Annual Report 2019/2020 - Deutsche Industrie REIT-AG
Transcript of Annual Report 2019/2020 - Deutsche Industrie REIT-AG
01/10/2019– 30/09/2020
01/10/2018–30/09/2019 Difference %
Income statement (TEUR)
Gross Rental income
Net rental income
Result from the revaluation of investment properties
Finance result
Net income
FFO
FFO per share (€)
Recurring costs ratio
40,781
31,286
36,982
–11,468
50,821
24,646
0.84
6.9 %
25,481
20,950
37,552
–7,558
48,672
12,888
0.60
7.7 %
15,300
10,335
–570
–3,910
2,149
11,758
0.25
–0.8 %
60.0
49.3
–1.5
51.7
4.4
91.2
41.1
–10.8
30/09/2020 30/09/2019 Difference %
Balance sheet (TEUR)
Investment properties
Total assets
Equity
Total debt
(net) Loan-to-Value (LTV)
EPRA NAV
EPRA NAV per share undiluted (€)
585,820
715,849
377,200
309,638
37.1 %
376,709
11.74
392,849
438,989
181,463
250,749
57.8 %
181,671
7.74
192,971
276,860
195,737
58,889
–20.7 %
195,037
4.01
49.1
63.1
>100
23.5
–35.8
>100
51.8
REIT metrics
REIT equity ratio 64.4 % 46.2 % 18.2 % 39.4
Share information
Shares issued
Average number of shares 01/10 – 30/09
Market cap in € million
Share price XETRA (€)
32,079,505
29,297,634
574.2
17.90
23,451,945
21,619,034
403.4
17.20
8,627,560
7,678,599
170.8
0.70
36.8
35.5
42.4
4.1
Real estate portfolio
# Properties
Commercial rental space in m²
Annualised In place rent in € million
Occupancy commercial
WALT in years
IPR commercial in €/m²
Market value in € million
Rental yield
69
1,229,072
44.5
85.1 %
5.0
3.47
565.0
7.9 %
49
918,916
33.1
88.9 %
4.9
3.34
391.8
8.5 %
20
310,156
11.4
–3.8 %
0.1
0.13
173.2
–0.6 %
40.8
33.8
34.4
–4.2
2.0
3.9
44.2
-7.3
Key figures
1Deutsche Industrie REIT-AG
PICTURE: Westhausen, Dr.-Rudolf-Schieber-Str.
ContentLetter to our shareholders 2
The share 4
Corporate Governance Report 8
Report of the Supervisory Board 20
Composition of the Management Board and Supervisory Board 25
Deutsche Industrie as a REIT 26
The Acquisition Pipeline 28
The Real Estate Portfolio 34
Key figures according to EPRA 52
Table of contents 54
Financial Statement 88
Balance sheet 90
Statement of comprehensive income 91
Cash flow statement 93
Statement of changes in equity 95
Notes 96
Audit Opinion of the independent individual financial statements 152
Statement by the Executive Board regarding compliance with the requirements of the REITG 156
Financial Calendar 158
2Deutsche Industrie REIT-AG Annual report 2019/2020
A difficult year for all of us is coming to an end.
During the preparation of this Annual Report, the
second wave of the Corona pandemic has again
dominated everyday life in Germany. The economic
consequences of this crisis will continue to affect us
in the coming months. However, our business model
has proven to be extremely robust and there have
been no major negative effects for us so far. The past
financial year 2019/2020 was again successful for
Deutsche Industrie REIT-AG. We were able to grow
further this year and improve almost all key figures.
The property portfolio increased again in size and valueAs of 30 September 2020, the portfolio consists of
69 properties and is balanced at almost 568 € million.
This is an increase of nearly 50 %. In addition, there
are already eight further properties with an invest-
ment volume of approximately 53 € million. Con-
sidering all objects purchased so far, the pro forma
portfolio consists of 77 properties with annualised
total rent of around 49 € million and a portfolio
value of around 618 € million.
Our acquisition pipeline continues to be very well
filled and offers us good opportunities for further
significant growth in terms of quantity and quality
in the current financial year.
Capital increases and financing to strengthen liquidity Following the capital increase in November 2019, in
which we raised almost EUR 93 million, we carried
out a further capital measure in June 2020. This took
place mainly in view of the Corona crisis and took
advantage of the optimal time window on the capital
market. On the one hand, this was intended to buffer
possible risks of rent losses and rent deferrals, and on
the other hand, we wanted to be able to act quickly
in the event of further purchase opportunities.
In addition, external financing with a volume of
around 73 million was raised with very attractive
conditions.
Due to the higher value of the investment properties,
the high liquidity reserves and somewhat more
restrained borrowing, our debt-equity ratio (LTV) is
currently only 37.1 %, which is well below our target
level of 50 %. We see potential to take out more loans
in the coming months.
Good annual resultsNet rental income rose by almost 50 % from almost
21 € million in the previous year to just over 31 €
million in the 2019/2020 financial year. FFO (Funds
From Operations) increased by 91 % from just under
13 € million to nearly 25 € million. Despite the sharp
increase in the number of shares due to the two
capital increases, FFO per share rose by 41 % from
0.60 € to 0.84 €.
Equity more than doubled and the undiluted EPRA
NAV per share rose by 52 % from 7.74 € to 11.74 €.
The G-REIT equity ratio now stands at 64 %, which is
significantly above the required 45 % for the second
time in a row.
Dear Shareholders, Ladies and Gentlemen,
Letter to our shareholders
3Deutsche Industrie REIT-AG Letter to our shareholders
Dividend paymentAfter we paid a dividend of 0.09 € per share for the
first time last year, this year shareholders were pleased
to receive a dividend payment of 0.16 € per share.
We intend to continue this positive development
and plan to propose the distribution of a dividend
of EUR 0.24 for the 2019/2020 financial year at the
next Annual General Meeting.
Outlook 2020/2021We want to continue the development of the past
years with steady and sustainable growth in
2020/2021. In addition to manageable risks, the
effects of the corona crisis offer additional oppor-
tunities that we can exploit. For example, we have
actively promoted the issue of sale-and-lease-back
and positioned ourselves as a contact for German
SMEs. We are confident that we will be able to invest
a volume of between 100 € million and 200 € million
again this year. For the 2020/2021 financial year, we
expect to be able to achieve FFO of 32 € million to
34 € million.
We would like to take this opportunity to thank our
shareholders, our tenants, our employees, and service
providers for their great support.
With best regards,
Rolf Elgeti
Chief Executive Officer
Sonja Petersen
Chief Investment Officer
René Bergmann
Chief Financial Officer
Potsdam in December 2020
4Deutsche Industrie REIT-AG Annual report 2019/2020
22.00
15.10
Jan. 20 Feb. 20 Mar. 20Oct. 19 Nov. 19 Dec. 19 Apr. 20 May 20 Jun. 20 Jul. 20 Sep. 20Aug. 2014
15
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September 2019August 2019Juli 2019Juni 2019Mai 2019April 2019März 2019Februar 201903.01.2019Januar 2019Dezember 2018November 2018Oktober 2018
EUR
The Stock Market in view of the Corona Pandemic In 2019, the stock market experienced a massive rally.
Initial success with the negotiations between the USA
and China surrounding the trade dispute boosted the
markets. In 2019, the stock exchanges also benefited
from the central banks furthering their expansive
monetary policy in view of weakening economic.
The DAX closed the 2019 trading year with a plus of
25.5 %. Even both the MDAX and the SDAX rose by
31 %. At the beginning of the year 2020, the global
economy was in a strong position. Following the
worldwide outbreak the Corona Pandemic in Febru-
ary and the widespread national lockdowns put in
place to contain the pandemic, the stock markets
plummeted by over 30 %. The global economy came
under massive pressure and the economy slumped
sharply. After the fall in economic output in the
first half of 2020 a slight initial recovery of economic
activity was recorded. In April 2020 there was an
easing of the restrictions and in many countries some
sense of normality was restored. There is still however
a risk of setbacks as the results of the pandemic con-
tinue to progress. In the summer quarter, despite a
gradual recover, the economy was still far from the
pre-crisis level. A main reason for this, is that the
pandemic has still not been effectively contained
in many countries. After the massive economic
downturn in March and April a V-shaped recovery
took place in May on the stock markets. Nine months
into 2020, the DAX stood at 12,760.70 points,
exceeding the level of the previous year despite
Corona (September 30, 2019: 12,428.10 points).
The share
• Deutsche Industrie REIT-AG - Share price development (XETRA)
5Deutsche Industrie REIT-AG The share
DIR share performs well in the crisisAt the beginning of the 2019/2020 financial year, the
share price (opening price on October 1, 2019) stood
at EUR 17.20. Prior to the effects of the Corona crisis
and the resulting distortions in the stock markets, the
price was always stable above EUR 20.00. The lowest
value of the fiscal year was recorded on 06.04.2020 at
EUR 14.80, the highest share price reached EUR 23.60
on May 5, 2020. After the distortions on the stock
markets at the peak of the Corona crisis in March
and April the DIR share recovered faster and more
strongly than other German real estate stocks and
in May to June was traded at between EUR 19.00
and EUR 22.00.
Capital increases Within the 2019/2020 financial year, two capital
increases resulted in a significant increase in both
the capital stock and the number of shares. The first
cash capital increase took place in November 2019
(+5,711,242 shares) followed by a second increase in
June 2020 of 10 % without subscription rights of the
share capital (+2,916,318 shares), which increased the
number of shares to the current value of 32,079,505.
Shareholder structureThe shareholder structure is characterised by insti-
tutional national and international investors with
a predominantly long-term investment strategy.
The free float (as defined by Deutsche Börse AG
in compliance with the attribution regulations
pursuant to the German Securities Trading Act
(WpHG))amounted to 42.5 % at the reporting date
on September 30, 2020.
• Shareholder structure
The percentages are based on voting rights notifications in accordance with Sections 33 et seq. WpHG of the named shareholders, or notifications of managers transactions pursuant to Art. 19 MAR as well as individual voluntary disclosures by some shareholders. The voting rights in each case relate to the number of total voting rights at the time of the notification. In addition, there is the possibility that the share of voting rights has changed since then without any obligation to notify within the respective thresholds.
7.8 % Obotritia Capital KGaA
7.0 % Obotritia Alpha Invest GmbH4.7 % Obotritia Beta Invest GmbH4.4 % Babelsberger Beteiligungs GmbH3.6 % Försterweg Beteiligungs GmbH2.2 % Obotritia Delta Invest GmbH
29.7 % Total Obotritia-Group
9.8 % VBL
5.2 % Aurelius Growth Investments S.a.r.l.0.2 % Lotus AG0.9 % Olive Tree Invest GmbH
6.3 % attributable to Dirk Markus
6.2 % Parson GmbH5.0 % Massachusetts Financial Services 4.7 % Gert Purkert3.7 % Rocket Internet SE0.5 % Rolf Elgeti34.1 % Remaining free float
6Deutsche Industrie REIT-AG Annual report 2019/2020
Analyst CoverageIn February 2020, Berenberg Bank launched the
coverage on which the DIR shares are valued by three
separate analysts:
• The DIR share at a glance:
As of 30/09/2020
WKN
ISIN
Ticker Symbol
Listing date
Number of shares
Nominal capital in EUR
Stock exchanges
Market segment
Transparency level
A2G9LL
DE000A2G9LL1
JB7
07 December 2017
32,079,505
EUR 32,079,505.00
XETRA, Frankfurt and Berlin
Regulated market
Prime Standard
Date Institute Report Analyst Recommendation Target Price
23/11/2020 Baader Bank Update Andre Remke „Buy“ 24.00 EUR
08/09/2020 Berenberg Bank Update Kai Klose „Buy“ 23.00 EUR
13/08/2020 ODDO BHF Update Manuel Martin „Buy“ 24.50 EUR
Investor RelationsTo ensure a transparent and continuous dialogue
with existing and potential investors the DIR contin-
ued to intensify their investor relation activities in
2019/2020. In doing so, the company managed to
sustain more individual discussions and a greater
representation at various conferences.
Furthermore, in the 2019/2020 financial year, the DIR
often present in major investor media reports and
was thus able to improve its perception of the
company on the capital markets. On the Investor
Relations pages of the website, interested parties can
find information on capital market law mandatory
notices, such as ad-hoc announcements, as well as
financial reports and investor presentations available
for download.
8Deutsche Industrie REIT-AG Annual report 2019/2020
Declaration on corporate governance and Corporate Governance ReportIn the following, the Supervisory Board and the
Management Board of Deutsche Industrie REIT-AG
(DIR or the “Company”) report on the corporate
governance of the company and on the management
of the company in accordance with Section 289f of
the German Commercial Code (HGB).
The current Declaration of Conformity of the Super-
visory Board and the Management Board of Deutsche
Industrie REIT-AG dated 23 October 2020 is repro-
duced first. This is followed by a description of the
working methods of the Supervisory Board and
Management Board and their composition. In addi-
tion, the corporate governance of the company is
presented, and the diversity concept is discussed.
1. Declaration of Compliance of Deutsche Industrie REIT-AG with the German Corporate Governance Code (DCGK)
The Management Board and Supervisory Board of
Deutsche Industrie REIT-AG welcome and support the
German Corporate Governance Code (GCGC) and
the objectives it pursues.
They hereby declare in accordance with section 161
(1) of the German Stock Corporation Act (Aktienge-
setz) that Deutsche Industrie REIT-AG has complied
with the recommendations of the Government Com-
mission on the German Corporate Governance Code
as amended on 7 February 2017 and published by the
Federal Ministry of Justice in the official section of the
Federal Gazette (Bundesanzeiger) in the version of the
Code dated 7 February 2017, published in the Federal
Gazette on 24 April 2017, with the following excep-
tions, since the submission of the last declaration of
compliance on 25 October 2019:
Section 4.1.3 DCGK - Compliance Management System: The company has not employed more than six em-
ployees since the last declaration of compliance was
issued. The Management Board therefore saw no need
to draw up and disclose systems of measures in a
formalised form for compliance management or a
so-called “whistleblowing”. In view of the size of the
company, the cost of setting up, implementing, and
maintaining formalised systems of measures was and
is disproportionate to the potential benefits.
Section 4.1.5 DCGK - Consideration of women in filling management positions: The Management Board did not follow the recom-
mendation that diversity should be taken into
account when filling management positions in the
company, and in particular that women should be
given appropriate consideration. The company had
and currently has only employees without manage-
ment functions. Apart from the Management Board,
there were no management positions to be filled in
the company, which is why the company could not
follow this recommendation for formal reasons. For
this reason, the company had set 0 % as the target
figure for the participation of women in management
positions for the period until 30 September 2020 and
0 % as the target figure for the period until 30 Sep-
tember 2025. At Deutsche Industrie REIT-AG, how-
ever, the decisive criterion for filling management
positions is qualification and suitability, irrespective
of gender.
Section 4.2.1 Sentence 2 GCGC - Rules of Procedure for the Management Board: There were no rules of procedure for the Management
Board in the past year. The company believed this
instrument would not contribute to the effectiveness
of the Management Board in view of its small size.
9Deutsche Industrie REIT-AG Corporate Governance Report
Section 5.1.2 (1) Sentences 2 and 3; (2) Sentence 3 GCGC – Consideration of diversity, setting targets for the proportion of women on the Management Board and setting an age limit: The Supervisory Board did not follow the recommen-
dation to take diversity into account when appoint-
ing members of the Management Board. The compa-
ny believed professional qualifications and knowledge
of the company were decisive as prerequisites for
appointment. However, the company has set a target
of one-third for the period until 30 September 2020
for the participation of women on the Management
Board, which is currently being met. By 30 September
2025, the company has set one third as the target
figure for the participation of women on the Manag-
ing Board. For the reasons outlined above, an age
limit for members of the Board of Management had
not previously been set. By reso lution of 10 Septem-
ber 2020, the Supervisory Board has now decided on
an age limit for the Board of Management.
Section 5.3 DCGK - Formation of committees: In view of its small number of members, the Supervi-
sory Board had previously refrained from forming
committees. In view of the continued low level of
complexity and the transparent business model of
Deutsche Industrie REIT-AG, it did not consider it
necessary to form committees and devoted its entire
attention to the issues at hand.
Section 5.4.1 (2), (3), (4) DCGK - Specification of objectives for the composition of the Supervisory Board, particularly with regard to diversity, and development of a competence profile as well as an age limit to be specified and a rule limit for membership of the Supervisory Board: The Supervisory Board has not set any concrete
objectives for its composition or developed a compe-
tence profile for the entire body. Nor have rules on
diversity been laid down in the objectives for the
composition of the supervisory board. The company
believed professional qualifications and knowledge
of the company were decisive as prerequisites for
appointment, so that the aforementioned require-
ments were not conducive to achieving the objec-
tives. For this reason, the company has set 0 % for the
period up to 30 September 2020 and 20 % for the
period up to 30 September 2025 as the target figure
for the participation of women on the Supervisory
Board. For these reasons, the company has not yet set
an age limit or a standard limit for membership of
the Supervisory Board. By resolution dated 10 Sep-
tember 2020, the Supervisory Board has now set an
age limit of 80 years. As the GCGC in the version
dated 16 December 2019, does not recommend a rule
limit to be set for the length of service on the Super-
visory Board, the company will not comment on this
point in future.
The Management Board and the Supervisory Board of
Deutsche Industrie REIT-AG further hereby declare in
accordance with section 161 (1) of the German Stock
Corporation Act (Aktiengesetz) that Deutsche Indus-
trie REIT-AG has complied since the announcement
with the recommendations of the Government Com-
mission on the German Corporate Governance Code
in the version dated 16 December 2019, published
in the official section of the Federal Gazette on
20 March 2020, with the following exceptions and
will comply with the recommendations in the future
with the following exceptions:
Recommendation A.1 GCGC – Respect for diversity when filling management positions: The Management Board does not currently follow the
recommendation to take diversity into account when
filling management positions in the company. The
company currently only has employees without
management functions. Apart from the Management
Board, there are no management positions to be filled
in the company, which is why the company cannot
currently follow this recommendation for formal
reasons.
10Deutsche Industrie REIT-AG Annual report 2019/2020
Recommendation A.2 DCGK – Compliance Management System: The company currently employs only six staff. The
Management Board therefore sees no need to develop
and disclose systems of measures in a formalised form
for compliance management or a so-called “whistle-
blowing”. In view of the size of the company, the cost
of setting up, implementing, and maintaining formal-
ised systems of measures has never been and is not in
any reasonable proportion to the potential benefits.
Recommendation B.1 GCGC – Observance of diversity in the composition of the Management Board: The Supervisory Board does not currently follow the
recommendation to observe diversity when appoint-
ing Management Board members in the company.
The company is of the opinion that professional
qualifications and knowledge of the company are
decisive as prerequisites for appointment, so that the
above-mentioned requirements are not conducive to
achieving the objective.
Recommendation B.2 DCGK – Long-term Succession planning by the Supervisory Board and Management Board: In view of the current age of the members of the
Management Board (37 to 50 years), the company
does not consider long-term succession planning to
be necessary at present.
Recommendations C.1 and C.2 GCGC – Specification of objectives for the composition of the Supervisory Board, in particular consideration of diversity and the develop-ment of a competence profile, and specification of an age limit for members of the Supervisory Board: The Supervisory Board has not set any concrete
objectives for its composition or developed a compe-
tence profile for the entire body and does not intend
to set such objectives or develop a competence profile
in the future. Nor have any rules on diversity in the
objectives for the composition of the Supervisory
Board been set or are to be set in the future. The
company is of the opinion that the professional
qualifications and knowledge of the company are
sufficient as prerequisites for the appointment of
members to the Supervisory Board, such that the
aforementioned objectives are not conducive to
achieving the objectives. For this reason, the compa-
ny had set 0 % as the target figure for the participa-
tion of women on the Supervisory Board for the
period up to 30 September 2020, and has dispensed
with setting an age limit for members of the Supervi-
sory Board. By resolution of 10 September 2020, the
Supervisory Board has now set a target of 20 % for
female participation in the Supervisory Board and
an age limit of 80 years for the period up until
30 September 2025.
Recommendation C.5 DCGK – Supervisory Board mandates in non-group listed companies: While the company assumes that Recommendation
C.5 of the GCGC contains guidelines for the mem-
bers of the company’s Supervisory Board (and not for
its Management Board), in view of the ambiguous
wording, it is pointed out that Management Board
member Rolf Elgeti holds more than two Supervisory
Board mandates in non-group listed companies or in
comparable supervisory bodies (also as Chairman of
the Supervisory Board).
Recommendation on section D.II.2 GCGC – Supervisory Board committees: In view of its small number of members, the Supervi-
sory Board has so far refrained from forming commit-
tees and therefore does not follow recommendations
D.2, D.3, D.4 and D.5 GCGC. In view of the contin-
ued low level of complexity and the transparent
business model of Deutsche Industrie REIT-AG, it is
not considered necessary to form committees in the
future either and continues to devote its full atten-
tion to the issues at hand.
Recommendation D.13 GCGC – self-assessment of the Supervisory Board:In view of the low complexity of the company and
its business model, it was assumed that the legally
required interval of Supervisory Board meetings and
the regular meetings held without the Management
Board, were adequate for the effective performance of
its duties. To this extent, a formalised self-assessment
system was dispensed with. By resolution dated
10 September 2020, the Supervisory Board has now
introduced a formalised self-assessment system and
will follow the recommendation in future.
11Deutsche Industrie REIT-AG Corporate Governance Report
Recommendations on Section G.I. of the GCGC – Remuneration of the Management Board: Section G.I. of the GCGC contains new recommen-
dations on the remuneration of the Management
Board, which the current remuneration model of
Deutsche Industrie REIT-AG does not fully comply
with, as it has become outdated and dates back to the
time before the announcement of the Government
Commission on the German Corporate Governance
Code in the version dated 16 December 2019. This
includes the recommendations on the determination
of the remuneration system (G.1), on the determina-
tion of the amount of the variable remuneration
components (G.6, G.7, G.8, G.10 and G.11) and on
benefits upon termination of contract (G.12, G.13
and G.14). The Supervisory Board and Management
Board intend to make the recommendations the focus
of the review of the 2020/2021 compensation system.
Recommendation G.3 GCGC – customary level of specific total remuneration:The Supervisory Board is currently not carrying out
a peer group comparison to assess the customary
level of Management Board remuneration, as there
is currently not a sufficient representation and
therefore a lack of suitable comparable companies/
REITs in Germany. Nevertheless, the Supervisory
Board checks that the remuneration of the Board
of Management is appropriate and customary by
comparing it with national and international listed
real estate companies in the broader sense.
Recommendation G.4 GCGC – Assessment of the customary level of Management Board remuneration within the company:At present, the Supervisory Board does not determine
the customary level of Management Board remune-
ration by establishing a relationship with senior
management and the workforce, since firstly, due to
the small size and low complexity of the company,
there is currently no senior management level and
secondly, the number of employees is too small to be
able to make meaningful deductions.
Recommendation G.16 GCGC – crediting of remuneration when members of the Supervisory Board take on non-group supervisory board mandates: The Supervisory Board does not follow the recom-
mendation that, when members of the Management
Board take on non-group supervisory board man-
dates, it should decide whether and to what extent
remuneration from the respective supervisory board
mandate should be credited. Based on past experience
with the members of the Management Board and
their dealings with non-group Supervisory Board
mandates, it is not expected that non-group Supervi-
sory Board mandates will have a negative impact on
the future activities of the members of the Manage-
ment Board for the company. Given the Supervisory
Board’s ability to exercise control, which also exists
independent of the recommendation, a decision on
the crediting of remuneration from non-group
Supervisory Board mandates is not necessary.
Rostock, 23 October 2020
For the Supervisory Board
Hans-Ulrich Sutter Chairman of the Supervisory Board
For the Management Board
Rolf Elgeti Chairman of the Management Board
13Deutsche Industrie REIT-AG Corporate Governance Report
The current declarations of compliance are published
on our website https://www.deutsche-industrie-reit.
de/, in the “Investor Relations” section under the
menu items “Corporate Governance” and “Declara-
tion of Compliance”.
2. Functioning of the Management Board and Supervisory Board
Management structure with three bodiesThe Management Board and Supervisory Board work
closely together for the benefit of the company to
ensure responsible management and control of the
company through good corporate governance.
An essential element of corporate governance is the
separation of corporate management and corporate
control. This is achieved through a clear division of
tasks and responsibilities between the Management
Board and the Supervisory Board. In addition, the
Annual General Meeting is the third body. Through
it, shareholders participate in fundamental decisions
of the company.
The Management BoardThe Management Board manages the company on its
own responsibility and represents it in transactions
with third parties. In doing so, it is bound to the
interests of the company with the aim of creating
sustainable value. It develops the company’s strategic
orientation, agrees it with the Supervisory Board and
ensures its implementation. The Management Board
also ensures that appropriate risk management and
controlling systems are in place within the company.
The members of the Management Board are responsi-
ble for individual areas of responsibility, irrespective
of their joint responsibility for the company. They
work together as colleagues and keep each other
informed of important events and measures in their
areas of responsibility. The Management Board has
not yet adopted rules of procedure.
The Management Board of Deutsche Industrie
REIT-AG is appointed by the Supervisory Board in
accordance with Article 6 No. 2 of the Articles of
Association. The Supervisory Board also determines
the total number of members on the Management
Board and whether there should be a Chairman or
Spokesman. The members of the Management Board
are appointed for a maximum of five years. Reap-
pointments are permitted.
The Supervisory Board does not currently follow
recommendation B.1 of the German Corporate
Governance Code (DCGK) to take diversity into
account when appointing members of the Manage-
ment Board. The company is of the opinion that
professional qualifications and knowledge of the
company are sufficient as prerequisites for appoint-
ment, with the result that the above-mentioned
requirements are not conducive to achieving the
objectives.
However, the Supervisory Board set a target
of one third for the proportion of women on the
Management Board for the period up to 30 Septem-
ber 2020 and maintains this target, by resolution of
10 September 2020, for the period up to 30 Septem-
ber 2025. This target figure has been achieved in the
past and is currently being achieved. No further rules
on diver sity in the targets for the composition of the
Management Board have been defined to date.
The Management Board of Deutsche Industrie
REIT-AG consists of three persons: Mr Rolf Elgeti
(CEO), Ms Sonja Petersen (née Paffendorf) (CIO)
and Mr René Bergmann (CFO). The Management
Board contract of Mrs. Sonja Petersen (née Paffendorf)
was extended for a further three years until 17 Octo-
ber 2023.
The CEO, Mr Rolf Elgeti, is responsible for Human
Resources, Public Relations and Strategy. The CIO,
Mrs. Sonja Petersen (née Paffendorf), is responsible
for investment and asset management. The CFO,
Mr René Bergmann, is responsible for the areas of
accounting/controlling, financing and investor
relations. All three Management Boards also manage
and control external service providers for their respec-
tive areas.
14Deutsche Industrie REIT-AG Annual report 2019/2020
The CVs of the members of the Management Board
can be found at https://deutsche-industrie-reit.de/en/
company/ceo/
The Supervisory Board and Management Board agree
on annual targets, the achievement of which is
regularly reviewed.
The Management Board is responsible for training
and refresher courses.
In section B.2, the DCGK recommends that long-term
succession planning should be carried out by the
Supervisory Board. The DIR does not comply with
this recommendation, as the company does not
currently consider long-term succession planning to
be necessary in view of the current age of the mem-
bers of the Management Board (37 to 50 years).
The company had previously believed the profession-
al qualifications and knowledge of the company were
decisive as prerequisites for appointments, so that no
age limit had been set for members of the Board of
Management. In a resolution dated 10 September
2020, the Supervisory Board has now decided to set
an age limit of 80 years for members of the Manage-
ment Board.
A D&O insurance policy has been taken out for the
members of the Management Board, considering
Section 93 (2) of the German Stock Corporation Act
(AktG).
The remuneration of the CEO, Rolf Elgeti, is currently
paid in the form of fixed remuneration via a pay-as-
you-go agreement with Obotritia Capital KGaA. The
remuneration system for the Management Board
members Sonja Petersen and René Bergmann is based
on short and long-term remuneration incentives.
Detailed information on the remuneration of the
Management Board is provided in the remuneration
report in the management report 2019/2020.
Section G.I. of the GCGC contains new recommenda-
tions on the remuneration of the Management Board,
which the current remuneration model of Deutsche
Industrie REIT-AG does not fully comply with, as it
was agreed on prior to the announcement of the Gov-
ernment Commission on the German Corporate
Governance Code in the version dated 16 December
2019. This applies to the recommendations on the
determination of the remuneration system (G.1), the
determination of the amount of the variable remu-
neration components (G.6, G.7, G.8, G.10 and G.11)
and benefits upon termination of the contract (G.12
and G.13). Before the next annual shareholders’
meeting, the supervisory board will pass a resolution
in accordance with § 87a (1) of the German Stock
Corporation Act (AktG) on the future remuneration
system for the Management Board and submit it to
the shareholders’ meeting for approval in accordance
with § 120a (1) of the German Stock Corporation Act
(AktG).
Consideration of women when filling management positionsThe Management Board does not currently follow
recommendation A.1 of the German Corporate
Governance Code (DCGK) to pay attention to
diversity when filling management positions in the
company. The company currently only has employees
without management functions. Apart from the
Management Board, there are no management
positions to be filled in the company, which is why
the company cannot currently follow this recommen-
dation for formal reasons. Even if the company was
and is of the opinion that Section 76 (4) AktG has no
practical scope in this particular case due to the lack
of management positions to be filled, the company
had, purely as a precautionary measure for the period
up to 30 September 2020 and currently maintains, by
resolution of 10 September 2020 for the period up to
30 September 2025, 0 % as the target for the participa-
tion of women in management positions. At Deutsche
Industrie REIT-AG, however, the decisive criterion for
filling management positions is qualification and
suitability, irrespective of gender.
The Supervisory BoardThe central tasks of the Supervisory Board are to
advise and monitor the Management Board. The
five-member Supervisory Board of Deutsche Industrie
REIT-AG works based on rules of procedure which it
has given itself. Overall, the members of the Supervi-
15Deutsche Industrie REIT-AG Corporate Governance Report
sory Board have the knowledge, skills and profession-
al experience required to properly perform their
duties.
Proposals for resolutions and information on the
subjects to be discussed are made available to the
members of the Supervisory Board in good time
before the respective meeting. By order of the
Chairman of the Supervisory Board, resolutions may
be passed outside meetings in individual cases. This
option is occasionally used in urgent cases. In the
event of a tied vote on resolutions, the Chairman of
the Supervisory Board has the casting vote.
All members of the Supervisory Board are elected by
the shareholders at the Annual General Meeting.
There are currently no employee representatives on
the Supervisory Board of Deutsche Industrie REIT-AG.
In the opinion of the shareholder representatives on
the Supervisory Board, all shareholder representatives
are to be considered independent.
The Supervisory Board does not intend to set specific
targets for its composition or to draw up a compe-
tence profile for the entire body. Nor is it intended to
lay down rules on diversity in the objectives for the
composition of the supervisory board. The company
is of the opinion that professional qualifications and
knowledge of the company are decisive as prerequi-
sites for appointment, so that the aforementioned
requirements are not conducive to achieving compa-
ny objectives. For this reason, the company set 0 % as
the target for the participation of women on the
Supervisory Board for the period up to 30 September
2020. This target figure was achieved during the
relevant period; since 6 March 2020, the actual level
of female participation has been 40 %. By resolution of
10 September 2020, the Supervisory Board has now set
20% as the target figure for female participation on
the Supervisory Board for the period until 30 Septem-
ber 2025. This target figure is currently also being met.
The Supervisory Board of Deutsche Industrie REIT-AG
currently consists of five persons: Mr Hans-Ulrich
Sutter, Dr Dirk Markus, Mr Achim Betz, Ms Cathy
Bell-Walker and Ms Antje Lubitz.
Hans-Ulrich Sutter is Chairman of the Supervisory
Board, Dr Dirk Markus is the first vice Chairman and
Achim Betz is the second vice Chairman. The term of
office of all members of the Supervisory Board expires
at the end of the Annual General Meeting that
resolves on the discharge of the members of the
Supervisory Board for the financial year ending on
30 September 2024.
The CV‘s of the members of the Supervisory Board are
published at https://www.deutsche-industrie-reit.de/
en/ in the section “Company” under the menu item
“Supervisory Board”.
In view of its small number of members, the Supervi-
sory Board has so far refrained from forming commit-
tees and therefore does not follow recommendations
D.2, D.3, D.4 and D.5 DCKG. In view of the continu-
ing low level of complexity and the transparent
business model of Deutsche Industrie REIT-AG, it
does not consider it necessary to form committees in
the future either and continues to devote its full
attention to the issues at hand.
In the past, no age limit was set. The company was of
the opinion that the specification of an age limit was
not appropriate, as the knowledge and experience of
older persons should also be available to the compa-
ny over a longer period of time in the context of
Management Board and Supervisory Board activities.
In addition, professional qualifications and knowl-
edge of the company should be decisive as pre-
requisites for filling the position. By resolution of
10 September 2020, the Supervisory Board has now
set an age limit of 80 years for the Supervisory Board.
The Chairman of the Supervisory Board explains the
activities of the Supervisory Board in his annual
report and verbally at the Annual General Meeting.
The Supervisory Board regularly assesses the effi-
ciency of its own performance of its duties during
meetings held in person and by telephone. By
resolution dated 10 September 2020, the Supervisory
Board has now introduced a formalised self-assess-
ment system, which will be applied in the current
16Deutsche Industrie REIT-AG Annual report 2019/2020
financial year. It will report on the manner and
results in the next declaration on corporate govern-
ance.
A D&O insurance policy was taken out for the
members of the DIR Supervisory Board in January
2018.
In accordance with the Articles of Association, the
members of the Supervisory Board receive a fixed
remuneration and reimbursement of cash expenses.
Detailed information on the remuneration of the
Supervisory Board is provided in the remuneration
report in the management report 2019/2020.
The members of the Supervisory Board ensure that
they have sufficient time to perform their duties.
They are responsible for providing the necessary basic
and advanced training. The company provides
appropriate support to the members of the Super-
visory Board during their inauguration and training
and further training. All members of the supervisory
board are given access to specialist literature and are
reimbursed for the costs of attending seminars and
webinars in which topics relevant to the work of the
supervisory board are covered.
Further details of the work of the Supervisory Board
can be found in the Report of the Supervisory Board,
which is part of the Annual Report 2019/2020.
Cooperation between Management Board and Supervisory BoardThe Supervisory Board appoints the members of the
Management Board, determines their respective total
remuneration and monitors their management of the
company. It also advises the Management Board on
the management of the company. The Supervisory
Board approves the annual financial statements.
Major decisions made by the Management Board
require the approval of the Supervisory Board.
The Management Board ensures regular, timely and
comprehensive reporting to the Supervisory Board.
In addition, the Chairman of the Supervisory Board
is kept regularly and continuously informed about
business developments. Intensive and continuous
communication between the Management Board
and the Supervisory Board is the basis for efficient
corporate management.
The Management Board of Deutsche Industrie
REIT-AG regularly attends the meetings of the
Supervisory Board. It reports in writing and orally on
the individual agenda items and draft resolutions
and answers the questions of the Supervisory Board
members. If necessary, the Supervisory Board also
meets without the Management Board.
Conflicts of interestConflicts of interest of members of the Management
Board and Supervisory Board must be disclosed to the
Supervisory Board without delay. No conflicts of
interest arose in the 2019/2020 financial year.
17Deutsche Industrie REIT-AG Corporate Governance Report
3. Essential corporate governance practices
Basic principles of complianceDeutsche Industrie REIT-AG is committed to responsi-
ble management of the company with a focus on
sustainable value creation. This includes cooperation
in a spirit of trust between the Management Board
and the Supervisory Board as well as between employ-
ees and a high level of transparency in reporting and
corporate communications.
The main basis of Deutsche Industrie REIT-AG’s
business is to create, maintain and strengthen the
trust of tenants, business partners, shareholders and
other capital market participants and employees.
Thus, compliance at DIR means not only adherence
to legal principles and the Articles of Association, but
also adherence to internal instructions and voluntary
commitments to implement the values, principles,
and rules of responsible corporate governance in
daily operations.
Compliance management SystemCurrently, the DIR has only five employees (exclud-
ing the Management Board). The Management Board
therefore saw and still sees no need to draw up and
disclose systems of measures in a formalised form for
compliance management and a so-called “whistle
blowing”. In view of the size of the company, the cost
of setting up, implementing, and maintaining formal-
ised systems of measures has never been and is not in
any reasonable proportion to the potential benefits.
Organisation and ControllingDeutsche Industrie REIT-AG has its registered office in
Germany and is therefore subject to the provisions of
German stock corporation and capital market law
and the provisions of the Articles of Association.
Deutsche Industrie REIT-AG manages the company
primarily based on the following key figures: EBIT,
FFO, LTV, EPRA NAV and cash flow. Sustainable
economic, social, and ecological aspects are consid-
ered.
Shareholders and Annual General MeetingThe shareholders of Deutsche Industrie REIT-AG
exercise their rights before or during the Annual
General Meetings to the extent permitted by law and
the Articles of Association and exercise their voting
rights. Each share grants one vote.
The Annual General Meeting is chaired by the
Chairman of the Supervisory Board. Every sharehold-
er is entitled to participate in the annual sharehold-
ers’ meeting, to speak on the respective items on the
agenda and to request information on company
matters, insofar as this is necessary for the proper
assessment of an item on the agenda. The sharehold-
ers’ meeting decides on all tasks assigned to it by law.
Deutsche Industrie REIT-AG publishes the agenda of
the annual general meeting and the reports and docu-
ments required for the annual general meeting on its
website at: https://www.deutsche-Industrie.de/en/ in
the section “Investor Relations” under the menu item
“Annual General Meeting”.
PICTURE:Wedemark, Industriestraße
18Deutsche Industrie REIT-AG Annual report 2019/2020
To make it easier for its shareholders to exercise their
rights personally and to be represented by a proxy,
the DIR appoints a representative to exercise voting
rights in accordance with instructions. This represent-
ative can also be contacted during the Annual
General Meeting.
The general meeting of shareholders takes place
within the first eight months of each financial year.
The Annual General Meeting of Deutsche Industrie
REIT-AG, which passed resolutions on the financial
year ended 30 September 2019, was held in Berlin on
6 March 2020. The Annual General Meeting resolved
to expand the Supervisory Board to five members and
re-elected the previous Supervisory Board members
Hans-Ulrich Sutter, Dr Dirk Markus and Achim Betz
and elected Cathy Bell-Walker and Antje Lubitz as
new members of the Supervisory Board.
It was also resolved to pay a dividend of EUR 0.16 per
share for the 2018/2019 financial year.
Furthermore, the Management Board and Supervisory
Board were approved for their term of office in the
2018/19 financial year. DOMUS AG Wirtschaftsprü-
fungsgesellschaft/Steuerberatungsgesellschaft, Berlin,
was elected as auditor for the 2019/20 financial year.
In addition, various minor amendments to the
Articles of Association were approved. New Author-
ised Capital 2020 was created, and a resolution was
passed on the creation of an authorisation to issue
warrant-linked and/or convertible bonds with the
option of excluding subscription rights.
Around 58 percent of the share capital was represent-
ed (share capital of the company at the time the
Annual General Meeting was convened: EUR
29,163,187).
All the items on the agenda were approved by
a large majority.
Stock option plansDeutsche Industrie REIT-AG currently has no stock
option programs or similar incentive systems.
Transparent reportingVia its website, Deutsche Industrie REIT-AG ensures
that shareholders and the interested public receive
uniform, comprehensive, timely and simultaneous
information on the economic situation and new
facts. This information is available on the website at
https://www.deutsche-Industrie-reit.de/en in the
“Investor Relations” section.
Reporting on the financial performance and financial
position is currently carried out in annual reports,
quarterly announcements as well as in the half-yearly
financial reports, which are available for download
on the company’s website. Significant current
information is published via Corporate News and ad
hoc announcements and is also made available on
the company’s website. In addition, transactions
by management personnel and related parties are
publicly disclosed as “Directors’ Dealings” in accord-
ance with Article 19 MAR (Market Abuse Regulation)
and are also available on the company’s website.
In accordance with Art. 18 MAR, prescribed insider
lists are maintained, and the persons included in
insider lists have been and are being informed of
the resulting legal obligations and sanctions.
Significant events and publication dates are main-
tained and published in the financial calendar, which
can be viewed at any time on the company’s website.
19Deutsche Industrie REIT-AG Corporate Governance Report
Accounting and Auditing The annual financial statements of Deutsche Indus-
trie REIT-AG are prepared in accordance with IFRS as
applicable in the European Union. After preparation
by the Management Board, the annual financial state-
ments are examined and approved by the audi tor and
the Supervisory Board. The company aims to publish
the annual financial statements within 90 days of the
end of the financial year in accordance with the
German Corporate Governance Code and to publish
the mandatory financial information during the year
(quarterly reports and the half-yearly financial report)
within 45 days.
The annual general meeting of shareholders which
passed a resolution on the financial year ended
30 September 2019, appointed DOMUS AG
Wirtschaftsprüfungsgesellschaft Steuerberatungs-
gesellschaft as auditor for the 2019/2020 financial
year. DOMUS AG’s audits comply with German
auditing regulations as well as the principles of
proper auditing laid down by the Institut der
Wirtschaftsprüfer (Institute of Auditors) and the
International Standards on Auditing. The chairman
of the supervisory board shall be informed immedi-
ately by the auditor of any reasons for exclusion or
exemption and any inaccuracies in the declaration
of compliance which arise during the audit. The
auditor reports without delay to the Chairman of
the Supervisory Board on all issues and incidents of
importance to the duties of the Supervisory Board
that arise during the audit and is obliged to inform
the Super visory Board immediately of any grounds
for exclusion or impartiality that may arise.
Opportunity and risk managementA key element of corporate management is risk
management to counter the risks to which Deutsche
Industrie REIT-AG is exposed adequately and system-
atically. A comprehensive process has been intro-
duced to enable management to identify, assess and
control risks and opportunities in good time. To this
extent, unfavourable developments and events
become transparent at an early stage and can be
analysed and dealt with in a targeted manner. Further
information on risk management is contained in the
opportunities and risks report in the management
report 2019/2020.
Rostock, December 2020
For the Supervisory Board
Hans-Ulrich Sutter Chairman of the Supervisory
For the Management Board
Rolf Elgeti Chairman of the Management Board
20Deutsche Industrie REIT-AG Annual report 2019/2020
Report of the Supervisory Board
Dear Shareholders,
In the 2019/2020 financial year, the Supervisory
Board of Deutsche Industrie REIT-AG duly performed
the duties incumbent on it under the law, the Articles
of Association and the Rules of Procedure.
Cooperation between Supervisory Board and Management BoardThe Supervisory Board continuously monitored and
advised the Management Board in the management
of the company. The Supervisory Board was directly
involved in all decisions of fundamental importance
to the company. The Board of Management fulfilled
its duties to provide information and informed the
Supervisory Board regularly, promptly and compre-
hensively, both in writing and verbally, about
corporate planning, the course of business, strategic
developments, the current situation of the company
and the current occupancy rates.
The members of the Supervisory Board always had
ample opportunity to critically examine the Manage-
ment Board’s proposed resolutions and to make their
own suggestions. In particular, the members of the
supervisory board discussed in detail and checked the
plausibility of all business transactions of significance
to the company on the basis of written and verbal
reports from the management board. On several
occasions the Supervisory Board dealt in detail with
the risk exposure, liquidity planning and equity of
the company. At the meeting for the balance sheet
approval the Board of Management also reported to
the Supervisory Board on the profitability of the
company, and in particular on the return on equity.
The Supervisory Board gave its approval for individu-
al business transactions as required by law, the articles
of association or the rules of procedure for the Board
of Management.
The Company provides appropriate support to the
members of the Supervisory Board during their inau-
guration and for training and further education meas-
ures. All members of the Supervisory Board are given
access to specialist literature and are reimbursed for
the costs of attending seminars and webinars which
include topics relevant to the work of the Supervisory
Board.
Attendance of the Supervisory Board meetingsA total of nine meetings of the Supervisory Board
were held in the period under review, of which two
were face-to-face meetings, two were internet con-
ferences and five were telephone conferences. In
addition, resolutions were passed by written proce-
dure. Resolution proposals submitted by the Board of
Management were approved following examination
of extensive documentation and intensive discussions
with the Board of Management. No committee meet-
ings of the Supervisory Board took place in the period
under review. If deemed necessary, the Supervisory
Board may meet without the Management Board.
No member of the Supervisory Board attended fewer
than half of the meetings. There were no conflicts of
interest amongst the members of the Management
Board or the Supervisory Board. Any conflicts must be
disclosed to the Supervisory Board without delay.
21Deutsche Industrie REIT-AG Report of the Supervisory Board
• The following overview shows the attendance of the members of the Supervisory Board at meetings in the 2019/2020 financial year:
MeetingHans-Ulrich Sutter
Dr. Dirk Markus
Achim Betz
Cathy Bell-Walker
Antje Lubitz
Date Species
Chairman of the Super-visory Board
First Deputy Chairman of the Supervisory Board
Second Deputy Chairman of the Supervisory Board
Member of the Supervisory Board
Member of the Supervisory Board
since 06.03.2020 since 06.03.2020
30/10/2019 Conference Call x x x
07/11/2019 Conference Call x x x
14/11/2019 Conference Call x x x
17/12/2019Face-to-face meeting, Potsdam
x x x
06/03/2020Face-to-face meeting, Berlin
x x x x (by telephone) x
20/05/2020 Internet Conference x x x x x
16/06/2020 Conference Call x x x x
17/06/2020 Conference Call x x x x
10/09/2020 Internet Conference x x x x x
Key issues discussed by the Supervisory BoardThe Supervisory Board’s discussions at the indivi dual
meetings focused on the following key issues:
On 30 October 2019, the Supervisory Board approved
the resolution put forward by the Board of Manage-
ment on the same date to implement a capital
increase with subscription rights against cash contri-
butions. The subscription price was resolved on 7
November 2019 and the volume of this capital
increase on 14 November 2020.
Meeting on 17 December 2019
• The auditor’s report on the inspection of the
annual financial statements for the 2018/2019
financial year and the audit of the dependency
report
• Resolution on the approval of the audited finan-
cial statements for the 2018/2019 financial year,
the proposal for the distribution of profits and
the audited dependency report
• Resolution on the Report of the Supervisory Board
for the 2018/2019 financial year
• Resolution on the variable remuneration for
the members of the Board of Management Sonja
Petersen and René Bergmann for the financial
year 2018/2019 and the setting of targets for the
variable remuneration for the financial year
2019/2020.
• Discussions on the agenda for the Annual General
Meeting on 6 March 2020
• Management Board report business developments,
the portfolio and successful acquisitions, the
financing and the acquisition pipeline
• Resolution to offer Mrs. Sonja Petersen a contract
extension and appointment to the Management
Board for a further three years.
22Deutsche Industrie REIT-AG Annual report 2019/2020
In accordance with the articles of association, the
term of office of the previous members of the Super-
visory Board ended at the end of the last Annual
General Meeting. In accordance with the resolution
of the Annual General Meeting on 6 March 2020,
the Supervisory Board was expanded from three to
five members. The previous members of the Supervi-
sory Board, Mr. Hans-Ulrich Sutter, Dr. Dirk Markus
and Mr. Achim Betz were re-elected to the Supervisory
Board. Newly elected members are Ms Cathy Bell-
Walker and Ms Antje Lubitz. The Supervisory Board
was constituted on 6 March 2020, immediately after
the Annual General Meeting. At the meeting,
Mr Hans-Ulrich Sutter was re-elected unanimously as
Chairman. Dr. Dirk Markus was unanimously elected
as first vice Chairman. Achim Betz was unanimously
elected as second vice Chairman.
Meeting on 20 May 2020
• Report of the Management Board for the first half
of 2019/2020
• Report of the Management Board on the effects
of the Corona crisis
• Presentation of completed and planned
acquisitions
• Information on the financial situation
of the company
• Consultation on the Declaration of Compliance
2020 with the German Corporate Governance
Codex and other corporate governance issues
On 16 June 2020, the Supervisory Board approved
the resolution of the Board of Management to imple-
ment a capital increase with exclusion of subscription
rights. On 17 June 2020, the Supervisory Board ap-
proved the volume and the Board of Management’s
pricing proposal for this capital increase.
Meeting on 10 September 2020
• Report by the Management Board on business
developments, acquisitions and financing, and
expectations regarding the development of the
results for the financial year
• Resolution on targetting 20 % female represen-
tation on the Supervisory Board
• Resolution on setting a target of a one-third
proportion of women on the Management Board
• Resolution on the setting of a standard age limit
of 80 years for members of the Supervisory Board
and Management Board
• Resolution on the adjustment of the rules of
procedure of the Supervisory Board. The rules
of procedure have since been published on the
website https://www.deutsche-industrie-reit.de/
in the Investor Relations/Corporate Governance
section.
• Presentation of the 2020 draft statement in
compliance with the German Corporate Govern-
ance Codex and agreement to adopt it by circular
resolution in October 2020
In addition, individual transactions requiring approv-
al were approved by the Supervisory Board by circular
resolution.
Corporate governance
The Management Board also reports on corporate
governance at Deutsche Industrie REIT-AG on behalf
of the Supervisory Board in the corporate governance
declaration. This report is published on the compa-
ny’s website at https://www.deutsche-industrie-reit.
de/ in the Investor Relations/Corporate Governance
section and in the 2019/2020 Annual Report. The
Management Board and the Supervisory Board
23Deutsche Industrie REIT-AG Report of the Supervisory Board
repeatedly discussed the recommendations and
proposals from the German Corporate Governance
Code and issued a declaration of compliance in
accordance with section 161 of the German Stock
Corporation Act (AktG) on 23 October 2020.
Annual audit
The annual financial statements for Deutsche Indus-
trie REIT-AG as of 30 September 2020 prepared by
the Management Board, together with the manage-
ment report of the company, were audited by the
auditor appointed at the Annual General Meeting on
6 March 2020 and reviewed by the Supervisory Board,
DOMUS AG Wirtschaftsprüfungsgesellschaft/Steuer-
beratungsgesellschaft, Berlin, and issued with an
unqualified audit certificate.
The annual financial statements for Deutsche Indus-
trie REIT-AG and the management report of the
company as well as the auditor’s reports were made
available to all members of the Supervisory Board in
good time. The auditor attended the Supervisory
Board meeting on the 16 December 2020 for the
approval of the financial statements and reported on
the key findings of their audit at this meeting. This
included his comments on the internal control system
and risk management in relation to the accounting
process. He was also avai lable to the members of the
Supervisory Board for additional questions and
information. After a detailed discussion, the Supervi-
sory Board approved the results of the audit of the
annual financial statements and the management
report of the company.
PICTURE: Hannover, Wiesenauer Straße
24Deutsche Industrie REIT-AG Annual report 2019/2020
The Supervisory Board carefully examined the annual
financial statements and the management report
of the company, the proposal for the appropriation
of net profit and the audit reports of the auditor.
No objections were raised. The Supervisory Board
thereupon approved the annual financial statements
prepared by the Board of Management for the year
ended 30 September 2020. The annual financial
statements were thereby finalised.
Assessment of the report of the
Management Board on relations with
affiliated companies (dependency report)
The Board of Management has prepared a report
on relations with affiliated companies for the period
of control in accordance with Article 312 of the
German Stock Corporation Act and submitted it to
the Supervisory Board. The report of the Board of
Management on relations with affiliated companies
was the subject of the audit by the auditors. The
auditor issued the following opinion on the results
of his audit:
“Based on our audit and assessment in accordance
with professional standards, we confirm that
1. the factual information in the report
is correct
2. consideration paid by the company
for the legal transactions listed in the report
was not inappropriately high.“
The audit report was also submitted to the Superviso-
ry Board. The Supervisory Board examined both the
dependency report of the Board of Management and
the audit report of the auditors, and the auditors
participated in the Supervisory Board’s negotiations
on the dependency report and reported on the main
findings of their audit. Following the final results of
the review by the Supervisory Board, the Supervisory
Board concurs with the dependency report of the
Management Board and the audit report of the
auditors and raises no objections to the final state-
ment by the Management Board contained in the
dependency report.
Personnel changes on the Management
Board and Supervisory Boardt
There were no personnel changes in the Management
Board in the period under review. The manage-
ment contract of Ms. Sonja Petersen (née Paffendorf)
was extended for a further three years until 17 Octo-
ber 2023.
At the Annual General Meeting on 6 March 2020,
the Supervisory Board was expanded to five members.
Ms Cathy Bell-Walker and Ms Antje Lubitz were new-
ly voted onto the Supervisory Board. Furthermore,
the decision was made to allow the election of several
vice chairman to the Supervisory Board.
At the constituent meeting of the Supervisory Board
held after the Annual General Meeting, Mr Hans-
Ulrich Sutter was confirmed as Chairman of the
Supervisory Board. Dr. Dirk Markus was elected as
first vice chairman and Achim Betz as second vice
chairman. The term of office of all members of the
Supervisory Board expires with the conclusion of the
Annual General Meeting that resolves on the dis-
charge of the members of the Supervisory Board for
the financial year ending on 30 September 2024.
The Supervisory Board would like to thank the Board
of Management and the employees for their commit-
ment and hard work in the 2019/2020 financial year.
Rostock, December 2020
For the Supervisory Board
Hans-Ulrich Sutter
Chairman of the Supervisory Board
25Deutsche Industrie REIT-AG Composition of the Management Board and Supervisory Board
Management Board
Sonja Petersen
CIO
Ms. Petersen is responsible for
the areas of acquisition and sales
as well as asset and property
management
Rolf Elgeti
CEO
Mr. Elgeti is responsible for
Human Resources, Public Relations
and Strategy
René Bergmann
CFO
Mr. Bergmann is responsible for
Corporate Finance, Accounting/
Controlling and Investor Relations
Composition of the Management Board and Supervisory Board
Supervisory Board
Hans-Ulrich Sutter
Chairman of the
Supervisory Board
Business diploma, Düsseldorf
Dr. Dirk Markus
First Deputy Chairman of
the Supervisory Board
MBA
CEO, Aurelius Group, London
Achim Betz
Second Deputy Chairman of
the Supervisory Board
Business diploma
Public accountant, Auditor,
Tax advisor, Nürtingen
The CVs of the members of the Management Board and Supervisory Board are published under https://deutsche-industrie-reit.de/en/company/ in the menu items “Management Board” respectively “Supervisory Board”.
Cathy Bell-Walker
Solicitor
Partner, Allen & Overy LLP,
London
Antje Lubitz
Real Estate Economist
Managing Director
3PM Services GmbH, Berlin
26Deutsche Industrie REIT-AG Annual report 2019/2020
REIT is the abbreviation for “Real Estate Investment
Trust”. These are listed real estate corporations whose
business purpose is long-term asset management and
the sustainable achievement of rental income. As a
result of their stock market listing, REITs have direct
access to the capital markets and, therefore, so to
speak, everlasting equity capital compared to real
estate funds. In addition, real estate stocks represent
a fungible investment vehicle for investors, enabling
indirect real estate investments in various asset
classes. Another key feature is the tax transparency
of the REIT company, as no income tax is levied at
company level and taxation at the investor level takes
place downstream of the dividend distribution. In
this respect, a REIT investment is equated to a direct
investment in real estate for tax purposes.
A REIT thus enables a broad spectrum of investors
to participate indirectly in real estate via shares. In
particular, retail investors can thus participate in
various real estate classes for which a direct invest-
ment in a property would not be considered due
to the volume, lump risk and management require-
ments.
For decades, REITs have been characterised by high
stability, profitability, dividend strength, and sus-
tained appreciation, and have long been established
Deutsche Industrie as REIT
PICTURE: Barleben, Im Hasenwinkel
27Deutsche Industrie REIT-AG Deutsche Industrie as REIT
in developed investment markets such as the US,
Canada, UK, France, Belgium, Singapore, Hong Kong
and Japan.
Essential prerequisites for becoming a REIT in
Germany derive from the REIT Law of 2007 and
include the following criteria:
• Minimum equity of the corporation of
EUR 15 million,
• Listing in the regulated market of a German
stock exchange
• At least 15 % free float in the shareholders,
• Limitation of the direct participation of a single
shareholder to 10 % of the share capital
• Minimum equity ratio of 45 %,
• Real estate assets of at least 75 % of total assets,
• Rental income of at least 75 % of total revenues,
• Minimum dividend distribution of 90 % of
the annual financial result according to
commercial law.
In this respect, the founding of a REIT already
requires a certain minimum size and stability of the
company. The German REIT criteria guarantee
shareholders high quality right from the start.
Furthermore, the listing in the “Regulated Market” on
a German stock exchange ensures the highest level of
transparency. For example, there are regular disclo-
sure requirements such as quarterly reporting in
German and English and mandatory participation
in analyst and investor events.
Finally, the tax exemption of a REIT stock company
enables very streamlined and cost-effective manage-
ment structures, as, e. g., no separate tax department
or managing complex tax structures are required.
In this respect, DIR is an interesting, low-risk and
attractive option on the capital market for investing
in German Light Industrial properties.
28Deutsche Industrie REIT-AG Annual report 2019/2020
It is the aim of the company to generate steady,
sustainable and profit-oriented growth. This can be
achieved with a balanced and regionally diversified
real estate portfolio and with a focus on the German
market.
DIR has a strong network and some longstanding
relationships with potential sellers of Light Industrial
real estate. As a result, the company receives a large
number of attractive property offers. Mostly these
assets are not sold through public auctions, but are
only offered to a small audience or even exclusively.
For this reason, the acquisition process and the
associated data management play a central role in the
valuation of the properties as well as the basic market
assessment. For this purpose, the acquisition team
has developed and implemented its own efficient
data collection for processing the offers. This exten-
sive data allows the company to carry out systematic
evaluations of the Light Industrial Real Estate market
in Germany.
Structure of offers/Evaluation
In the FY 2019/2020, the Company received
525 property offers with a total purchase price
volume of approximately 3,278 € million. To ensure
the validity of the evaluation, duplicates and incom-
plete offers were adjusted for the overall result. Offers
are only considered if they provide, the basic infor-
mation purchase price, rent and total floor space. The
three classifications for the usage of the properties
are: industrial park, logistics and production- &
logistics, which are defined by the DIR as general
categories.
Type Offers Percentage Asking Price vol. in m€ Area in m²
Industrial Park 60 15.7 % 356.3 725,954
Logistics 82 24.1 % 545.5 834,541
Production & logistics 197 60.2 % 1,362.5 2,536,450
Total 339 100.0 % 2,264.3 4,096,945
The analysis shows an excess of offers of production
& logistics real estate (> 60 %), subject to the signifi-
cant market share of German corporate real estate.
Despite the excess in offers for assets in production,
DIR was also able to make balanced investments in
industrial parks and logistics properties during the
period under review.
The Acquisition Pipeline
29Deutsche Industrie REIT-AG The Acquisition Pipeline
Industrial Park Logistics Production & logistics
Industrial Park Logistics Production & logistics
Based on the adjusted data, statements on average
purchase prices and initial yields can be made which
help the company to evaluate its own purchase
criteria and acquisitions in the market context.
Type Asking Price per m² Yield Multiple
Industrial Park 491 7.1 % 14.1
Logistics 654 6.6 % 15.1
Production & logistics 537 7.1 % 14.0
Total 553 7.0 % 14.3
The average price per square meter for Light Industri-
al properties is around 553 €/m², with an average
initial yield of 7.0 %. DIR was able to buy at an
average purchase price of 318 €/m² during the
financial year, around 42 % below market levels. The
average initial yield of 10.7 % was around 35 % above
the market yield.
Market
60.2 %24.1 %
15.7 %
DIR
27.4 %
31.5 %
41.1 %
0
100
200
300
400
500
600
Market
553
DIR
318
0 %
2 %
4 %
6 %
8 %
10 %
12 %
Market DIR
7.0 %
10.7 %
• Comparison of offers and DIR portfolio
• Asking price per m² • Yield
30Deutsche Industrie REIT-AG Annual report 2019/2020
Regional Allocation
Overall, the regional distribution of the data evalua-
tion is comparable with that of the DIR portfolio.
The company invests in Light Industrial real estate
throughout Germany, with a propensity towards
investments in the West and Southwest (North
Rhine-Westphalia, Baden-Württemberg and Bavaria),
due to the strong local industrial sector. This obser-
vation can also be seen in the data analysis, in which
the top 4 (North Rhine-Westphalia, Baden-Württem-
berg, Lower Saxony, Bavaria), account for 68.7 % of
the total volume, representing a significant share of
offers.
Federal State Offers Percentage Asking Price vol. in m€ Multiple Yield
North Rhine-Westphalia 91 23.9 % 540.1 13.7 7.3 %
Baden-Württemberg 44 15.9 % 359.2 13.5 7.4 %
Lower Saxony 43 15.6 % 353.2 14.4 6.9 %
Bavaria 30 13.4 % 303.9 13.8 7.2 %
Hesse 19 6.8 % 153.5 15.5 6.5 %
Saxony 29 6.3 % 141.9 15.5 6.5 %
Rhineland-Palatinate 16 3.5 % 78.6 13.7 7.3 %
Brandenburg 15 3.0 % 67.0 17.1 5.8 %
Schleswig-Holstein 9 2.5 % 56.3 14.3 7.0 %
Thuringia 12 2.2 % 50.1 12.7 7.9 %
Saxony-Anhalt 15 1.5 % 33.3 12.1 8.3 %
Mecklenburg-Western Pomerania 2 0.4 % 9.0 12.1 8.3 %
Saarland 1 0.1 % 1.4 11.5 8.7 %
Berlin 5 2.9 % 65.0 22.0 4.5 %
Bremen 6 1.4 % 22.2 22.2 4.5 %
Hamburg 2 0.8 % 18.7 19.0 5.3 %
Total 339 100.0 % 2,264.3 14.3 7.0 %
31Deutsche Industrie REIT-AG The Acquisition Pipeline
6.9 %
7.3 %
7.3 %
8.7 %
6.5 %8.3 %
6.5 %
7.9 %
8.3 %
7.0 %
5.8 %
4.5 %
4.5 %
5.3 %
7.4 %
7.2 %
Among the most expensive regions are the city states
of Berlin, Hamburg and Bremen, which have an
average initial yield of less than five percent. This
can be explained by the scarcity of offers in compari-
son to other regions and countries, while also
maintaining similar rent levels to the rest of the
properties in this asset class.
32Deutsche Industrie REIT-AG Annual report 2019/2020
Acquisition Process
The acquisition process of the company is character-
ized by an opportunistic approach. Each offer goes
through a structured analysis process in which
opportunities and risks are weighed up and swift
decisions on the attractiveness of the offer are made.
Overall, DIR rejected 73 % of the total volume of
offers because they did not meet the yield require-
ments. The main reasons for this were excessively
high purchase prices, major maintenance require-
ments and unsustainable rental conditions.
A total of 92 properties with a volume of 662 €
million were shortlisted in the financial year. These
properties had an average initial yield – based on the
expected purchase price – of around 8.3 %. DIR’s
purchase price offers were around 24 % below the
expected price, which led to the purchase of the
17 properties acquired in the fiscal year. The proper-
ties purchased have an average initial yield of 10.2 %.
The acquisition pipeline is still strong and the
company expects to purchase further attractive assets
and to therefore continue its portfolio growth in
the future.
total = 339 offers – 2,264 m€
closer selection = 92 offers – 662 m€
Offers made = 59 offers / 348 m€
Acquired = 17 Assets / 90 m€
Total
minus rejected offers –73 %
~8.3 % Initial yield/~462 €/m²
34Deutsche Industrie REIT-AG Annual report 2019/2020
The Real Estate PortfolioPortfolio overview
Pro forma
30/09/2018 30/09/2019 30/09/2020 07/12/2020
Properties
Commercial units
Total rental space in m²
Commercial rental space in m²
Annualised In place rent in € million
Ocupancy commercial
WALT in years
IPR commercial in €/m²
Market value in € million
Rental yield
22
900
508,443
470,776
16.1
84.9 %
3.9
3.23
167.0
9.6 %
49
1,205
1,105,419
918,916
33.1
88.9 %
4.9
3.34
391.8
8.5 %
69
1,528
1,561,024
1,229,072
44.5
85.1 %
5.0
3.47
565.0
7.9 %
77
1,758
1,720,881
1,383,875
49.8
86.2 %
5.4
3.41
617.5
8.1 %
Our investment strategy
Deutsche Industrie REIT-AG invests sustainably in
Light Industrial real estate across Germany. Light
industry includes storage, distribution of goods as
well as management and production. This asset class
consists mostly of medium to large industrial and
commercial estates. These properties are usually more
sophisticated than pure logistics real estate and have
a high local relevance.
The objective of the company is to generate constant,
sustainable and profit-oriented revenue growth by
means of further acquisitions, ongoing investments
in the real estate portfolio and strategic asset and
portfolio management. In strategic terms, the
company invests in good micro-locations which are
infrastructurally well-connected and have a high local
relevancy. By undertaking these investments the
company aims to occupy a niche which is situated
below the investment criteria of institutional inves-
tors and above the investments undertaken by private
investors.
As a result of the network of the corporate manage-
ment and the completed transactions, Deutsche
Industrie has close and in some cases long-standing
relationships with potential sellers of Light Industrial
properties. In most cases, these properties are not sold
through public auctions, but are only offered to a
small audience or even exclusively.
So far, properties have been acquired all over Germa-
ny and it is intended to continue acquiring properties
throughout Germany. There is no focus on specific
regions. It is the companys belief that having an wide
range of requirements has the advantage that lucra-
tive properties can be acquired outside the usual
Light Industrial locations.
35Deutsche Industrie REIT-AG The Real Estate Portfolio
Growth and operational performance
In the 2019/2020 financial year, the transfer of
ownership for 20 acquired commercial properties
took place. The property portfolio, reported as of
30 September 2020, therefore comprises 69 properties
with a total area of 1.2 million m². The weighted
average lease term (WALT) is 5.0 years, with an
annualised in place rent of € 44.5 million. The
portfolio is balanced at € 585.8 million (Including
IFRS-effect of € 20.8 milllion out of leaseholds).
In addition, purchase agreements were notarised for
eight further properties with an investment volume
of € 52.6 million for which the transfer of ownership
took place or will take place after 30 September 2020.
Taking into account all properties acquired and sold
to date, the total portfolio of Deutsche Industrie pro
forma consists of 77 properties with an annualised
total rent of around € 49.8 million and a portfolio
value of approx. € 617.5 million.
0 %
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
€ m
illio
n
No. o
f pro
perti
es
77
0
100
200
300
400
500
600
700
Proforma30/09/2030/09/1930/09/18
22 167.0
16.1
391.8
33.1
44.549
69565.0
49.8
617.5
Properties GAV Annualised in place
In addition to the growth in size, the key operating
figures also developed well. In a comparison of the
total portfolio as of the respective reporting date,
rents per m² of commercial space and the weighted
average lease term increased as well as the occupancy
rate improved significantly.
36Deutsche Industrie REIT-AG Annual report 2019/2020
WALT in years IPR commercial Occupancy commercial
Regional allocation
The real estate portfolio is spread all over Germany
with a focus on the more industrial south and west
and due to proximity to the ports in the north of the
country.
In the economically strong state of Baden-Wurttem-
berg, we were able to grow significantly through the
acquisition of three additional properties. After North
Rhine-Westphalia and Bavaria, the most important
federal states for the company, Lower Saxony and
Baden-Württemberg now follow in terms of rental
income. In total, the portfolio is now spread across
69 locations in twelve federal states.
Federal State Properties Commercial space Annualised rent % of rent
North Rhine-Westphalia 23 318,443 m² 10.8 Mio. € 24.2 %
Bavaria 6 125,109 m² 7.7 Mio. € 17.3 %
Lower Saxony 8 265,255 m² 7.5 Mio. € 16.8 %
Baden-Wurttemberg 7 170,390 m² 7.2 Mio. € 16.2 %
Mecklenburg Western Pomerania 7 119,742 m² 3.3 Mio. € 7.4 %
Brandenburg 5 46,443 m² 2.2 Mio. € 5.0 %
Thuringia 4 56,779 m² 1.7 Mio. € 3.8 %
Saxony-Anhalt 5 43,611 m² 1.5 Mio. € 3.5 %
Rhineland Palatinate 1 20,905 m² 1.0 Mio. € 2.3 %
Saarland 1 44,084 m² 0.9 Mio. € 2.1 %
Bremen 1 9,496 m² 0.4 Mio. € 0.9 %
Berlin 1 8,816 m² 0.2 Mio. € 0.5 %
Total 69 1,229,072 m² 44.5 Mio. € 100.0 %
Proforma30/09/2030/09/1930/09/18
€/m
²
Occ
upan
cy in
%
83
84
85
86
87
88
89
90
4,4
5.0
4,4
3.9
4.9
5.4
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
37Deutsche Industrie REIT-AG The Real Estate Portfolio
Balanced portfolio as of 30/09/2020 Properties with transfer after 30/09/2020
24
24
24
24
24
24
2828
28
2828
242424
2424242424
24242424
28
38Deutsche Industrie REIT-AG Annual report 2019/2020
Types of use
Deutsche Industrie distinguishes between three types
of property when it comes to the use of the respective
objects:
Logistics: These are building complexes that have
been designed for the distribution of goods and
merchandise, with the appropriate technical equip-
ment, high load capacities and, in most cases, access
suitable for trucks at any time (24/7). These properties
are typically used by single tenants or dominant
main tenants, who generally operate nationwide.
Industrial parks: These usually consist of several
different buildings, with various uses ranging from
storage to workshops, laboratories, offices and event
areas. The tenant structure is small and fluctuations
occur more regularly, the tenants also tend to be
more locally active. This enables higher rents, but can
also lead to longer marketing periods and higher
vacancy rates.
Production and logistics: These properties are normal-
ly geared to a main production user and, in addition
to the actual production areas, also consist of down-
stream warehouse/logistics, administrative and social
areas. These properties, are also often let to a larger
tenant with a typically longer lease term alongside
additional smaller secondary users.
Type
Prop
ertie
s
Total rental space
Commercial rental space IP
R p.
m
² Occupancy commercial W
ALT Annualised
rent% of rent GAV
Yiel
d
Industrial park 15 378,703 m² 353,513 m² 4.78 € 72.4 % 3.6 15.2 m€ 34.2 % 161.0 m€ 9.4 %
Logistics 21 409,322 m² 384,213 m² 3.42 € 84.3 % 4.9 13.4 m€ 30.1 % 201.6 m€ 6.6 %
Production & logistics
33 772,998 m² 491,346 m² 2.79 € 94.9 % 6.2 15.9 m€ 35.7 % 202.4 m€ 7.8 %
Total 69 1,561,024 m² 1,229,072 m² 3.47 € 85.1 % 5.0 44.5 m€ 100.0 % 565.0 m€ 7.9 %
• Within the properties, the individual tenancy units consist of the following main types of use:
Types of use by commercial
space40 %
33 %
11 %
16 %
493,721 m² Logistics larger areas, corresponding technical equipment
404,693 m² Production small to medium-sized areas, more simple equipment
190,620 m² Office mostly as simple administration or training rooms incl. corresponding social rooms
131,946 m² Storage halls, workshops
8,092 m² Other commercial space
e. g. open spaces, parking, antennas, etc.
1,229,072 m² total
1 %
39Deutsche Industrie REIT-AG The Real Estate Portfolio
Rebt by letting structure 43.5 %
34.5 %
22.0 %
Cyclical by rent share
56.6 %
37.6 %
4.7 %
Tenant structure
Weighted by the rental percentage of tenants in a
property, the DIR classifies the rental structure of the
tenant population per property location. The three
specifications used are: Single tenant, dominating
major tenant and a multiple tenant structure. The
rental structure within the company’s portfolio is
diversified across all three types of tenants and is
broken down as follows in proportion to the rent:
multi tenant
dominating major tenant
Single tenant
cyclical
non-cyclical
public sector
private/ non commercial
Cyclicality
The tenants in the DIR portfolio are assigned to
cyclicality types according to their economic sector
or business segment. The company distinguishes
between four different classifications, whose percent-
age of the total rent in the portfolio is as follows:
Letting structureNumber of properties
Annualised rent % of rent IPR p. m²Occupancy
commercial WALT
multi tenant 22 19.4 m€ 43.5 % 4.61 € 74.4 % 3.8
dominating major tenant 18 9.8 m€ 22.0 % 2.75 € 86.3 % 4.5
single tenant 29 15.3 m€ 34.5 % 3.06 € 95.3 % 6.5
Total 69 44.5 m€ 100.0 % 3.47 € 85.1 % 5.0
The company receives more than 40.0 % of its regular
rental income from tenants in sectors that are hardly
or only slightly exposed to economic fluctuations.
One example is Aenova/ Haupt Pharma from the
pharmaceutical industry with a current portfolio
rental percentage of 6.3 %. The heterogeneous
orientation cyclical and non-cyclical tenants enables
the company to operate a risk-minimising operative
rental management and to ensure a stable rental
return independent of expected economic fluctua-
tions.
1.1 %
40Deutsche Industrie REIT-AG Annual report 2019/2020
Tenant mix
The 484 tenants belong to some 54 different sectors
and are widely diversified in terms of their economic
sector, geographical orientation, lease terms and
usage profile. When purchasing new properties and
negotiating new and follow-up leases, it is important
to maintain and expand this diversity in order to
avoid cluster risks and maintain a more crisis-proof
tenant portfolio.
The ten largest tenants represent less than 34 % of the
rent, the other tenants representing more than 66 %
are rather small and widely spread. This has the
advantage of highly solvent tenants from economi-
cally strong sectors on the one hand while on the
other hand leaving the potential for rent increases
in the more fluctuating part of the portfolio.
Tenant Sector % of rent
Aenova / Haupt Pharma Pharmaceutical Industry 6.3 %
Versandhaus Walz GmbH, Baby Walz Online/Mail order seller 5.8 %
Lufthansa Group Aerospace company 3.8 %
Gabo Stahl GmbH Metalworking 3.5 %
DST Defence Service Tracks GmbH Defence industry 3.4 %
Bundesanstalt für Immobilienaufgaben German Armed Forces / public sector 2.8 %
Sihl GmbH Printable materials 2.7 %
CompAir / Gardner Denver Compressed air systems 2.3 %
Veenendaal Schaumstoffwerk GmbH Foam products 2.0 %
Zwilling J.A. Henckels AG Metalworking 2.0 %
Top Ten Tenants 34.5 %
Top Twenty Tenants 484 tenants 49.3 %
The weighted average lease term is 5.0 years and is
divided between contracts with remaining terms of
two to four years – typically many tenants in business
parks – and longer terms of more than five years,
mostly in production and logistics with a lower
number of tenants.
41Deutsche Industrie REIT-AG The Real Estate Portfolio
Property valuation
As of 30 June 2020, the annual property valuation of
the portfolio was carried out by an external appraiser.
The result was a significant revaluation of € 37.0
million. Therefore, the value of the balanced portfolio
now amounts to € 585.8 million (including € 20.8
million IFRS adjustments for leasehold rights).
The reasons for the increase are mainly higher market
prices, especially in logistics, as well as higher market
rents and operational enhancements (vacancy
reduction, rent increases and contract extensions)
in the portfolio.
• The valuation results as of 30/09/2020 for the various types of use are as follows:
TypeFair Value
in m€Fair Value per m²
commercial spaceValuation change
Valuation change to purchase price
Yield
Industrial park 161.0 455.5 8.2 % 28.3 % 9.4 %
Logistics 201.6 524.6 12.7 % 36.9 % 6.6 %
Production & logistics 202.4 411.9 9.6 % 21.6 % 7.8 %
Total 565.0 459.7 10.3 % 28.6 % 7.9 %
The property valuation for this financial year was again carried out by the CBRE GmbH Berlin.
up to1 year up to 2 years up to 3 years up to 4 years up to 5 years 5 to 10 years > 10 years no fixed expiration
5.5 m€4.9 m€
3.4 m€
5.9 m€
4.1 m€
12.7 m€
3.3 m€
4.6 m€
42Deutsche Industrie REIT-AG Annual report 2019/2020
CapEx / maintenance
The planning and implementation of any CapEx
measures, such as maintenance and upgrades, is
carried out using a bottom-up approach. This enables
the company to allocate financial resources directly
and in a targeted and demand-oriented manner. The
portfolio-wide management and monitoring of all
CapEx measures is the responsibility of the commis-
sioned asset management in consultation with the
company. The planning and monitoring of the
necessary measures implemented in this way enables
targeted portfolio maintenance and safeguarding of
the desired total return.
In line with the investment strategy, all purchase
decisions are also examined for possible CapEx require-
ments prior to a purchase. Once these measures are
determined, they are incorporated into the expected
return of the acquisition decision and the negotiations
with the seller party.
PICTURE:Wesel, Schepersweg
44Deutsche Industrie REIT-AG Annual report 2019/2020
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
1 Neubrandenburg, Augustastraße 30 Production & logistics 26 56,513 36,243 0.7 98.0 % 6.7 1.57 6.3 10.7 % Q1-2015
2 Güstrow, Glasewitzer Chaussee 31 Production & logistics 1 15,274 6,130 0.1 100.0 % 10.5 1.22 0.8 11.4 % Q1-2016
3 Bad Salzdetfurth, Teccenter 1 Industrial park 136 52,857 48,606 1.7 74.9 % 1.4 3.76 14.8 11.5 % Q1-2017
4 Löhne, Dieselstraße 7-9 Logistics 3 46,967 46,967 1.6 100.0 % 5.8 2.76 21.7 7.2 % Q2-2017
5 Schortens TCN, Olympiastraße 1 Industrial park 174 98,066 95,955 3.6 61.0 % 3.4 5.04 43.3 8.4 % Q1-2017/2018
6 Rostock, Handelsstraße 3 Logistics 111 39,023 38,459 1.1 96.6 % 5.7 2.43 15.2 7.3 % Q1-2017/2018
7 Bornheim, Ottostraße 91 Logistics 3 9,057 9,057 0.3 100.0 % 3.3 3.02 6.1 5.5 % Q1-2017/2018
8 Drei Gleichen, Dr. Bube Str. 6 Logistics 1 24,004 24,004 0.6 100.0 % 2.7 2.08 7.2 8.3 % Q2-2017/2018
9 Wuppertal, Am Brögel 1A - 23 Industrial park 65 10,109 9,251 0.4 76.7 % 1.6 4.56 6.2 6.7 % Q3-2017/2018
10 Remscheid, Kippdorfstraße 6 - 24 Industrial park 191 27,021 26,594 0.9 82.9 % 0.5 3.59 10.7 8.9 % Q3-2017/2018
11 Neustadt-Glewe, Brauereistraße 30 - 35 Production & logistics 5 11,081 10,932 0.3 100.0 % 3.4 1.99 2.4 10.9 % Q2-2017/2018
12 Dortmund, Hannöversche Straße 22 Industrial park 40 24,776 20,777 0.8 84.7 % 3.4 3.50 9.0 8.6 % Q3-2017/2018
13 Bochum, Kantstraße 10, 18-20 Industrial park 10 3,272 3,272 0.2 100.0 % 6.4 5.04 2.9 7.2 % Q3-2017/2018
14 Witten, Rüsbergstr. 70 Industrial park 35 11,304 7,887 0.4 91.1 % 3.2 3.65 4.0 9.3 % Q3-2017/2018
15 Ronnenberg, Berliner Str. 1-3 Production & logistics 5 31,099 30,099 0.8 89.7 % 1.4 2.50 10.1 8.2 % Q4-2017/2018
16 Elchingen, Dieselstraße 10 Production & logistics 1 7,690 3,258 0.2 100.0 % 8.3 4.29 3.1 5.4 % Q3-2017/2018
17 Lichtenfels, Bamberger Str. 58-60 Production & logistics 1 28,404 16,356 0.9 100.0 % 8.3 4.57 10.4 8.6 % Q3-2017/2018
18 Meschede, Am Steinbach 8 Industrial park 4 6,563 6,563 0.2 100.0 % 0.5 2.46 2.3 8.6 % Q3-2017/2018
19 Hattingen, Hufeisenstraße 6-8 Industrial park 5 2,580 2,580 0.1 100.0 % 2.0 3.85 1.6 7.5 % Q4-2017/2018
20 Meerbusch, Fritz-Wendt-Str. 5 Logistics 4 13,380 13,380 0.2 19.8 % 3.3 7.61 9.5 2.5 % Q4-2017/2018
21 Wildau, Chaussestraße 3 Logistics 89 16,808 14,307 1.0 96.2 % 0.9 6.24 14.5 7.1 % Q4-2017/2018
22 Fehrbellin, An der Plantage 15 Logistics 1 2,700 1,400 0.1 100.0 % 1.1 4.29 1.1 7.8 % Q2-2018/2019
23 Schleiz, Industriestraße 11 Production & logistics 1 5,929 5,929 0.2 100.0 % 4.9 3.20 2.9 8.0 % Q1-2018/2019
24 Bremen, Am Heidbergstift 6 Production & logistics 14 9,903 9,496 0.4 100.0 % 3.3 3.68 5.3 7.9 % Q1-2018/2019
25 Schortens II, Roffhausener Landstraße 18c Logistics 29 29,909 29,909 0.2 29.3 % 0.3 1.44 2.3 6.6 % Q1-2018/2019
The portfolio – property by property
45Deutsche Industrie REIT-AG The Real Estate Portfolio
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
1 Neubrandenburg, Augustastraße 30 Production & logistics 26 56,513 36,243 0.7 98.0 % 6.7 1.57 6.3 10.7 % Q1-2015
2 Güstrow, Glasewitzer Chaussee 31 Production & logistics 1 15,274 6,130 0.1 100.0 % 10.5 1.22 0.8 11.4 % Q1-2016
3 Bad Salzdetfurth, Teccenter 1 Industrial park 136 52,857 48,606 1.7 74.9 % 1.4 3.76 14.8 11.5 % Q1-2017
4 Löhne, Dieselstraße 7-9 Logistics 3 46,967 46,967 1.6 100.0 % 5.8 2.76 21.7 7.2 % Q2-2017
5 Schortens TCN, Olympiastraße 1 Industrial park 174 98,066 95,955 3.6 61.0 % 3.4 5.04 43.3 8.4 % Q1-2017/2018
6 Rostock, Handelsstraße 3 Logistics 111 39,023 38,459 1.1 96.6 % 5.7 2.43 15.2 7.3 % Q1-2017/2018
7 Bornheim, Ottostraße 91 Logistics 3 9,057 9,057 0.3 100.0 % 3.3 3.02 6.1 5.5 % Q1-2017/2018
8 Drei Gleichen, Dr. Bube Str. 6 Logistics 1 24,004 24,004 0.6 100.0 % 2.7 2.08 7.2 8.3 % Q2-2017/2018
9 Wuppertal, Am Brögel 1A - 23 Industrial park 65 10,109 9,251 0.4 76.7 % 1.6 4.56 6.2 6.7 % Q3-2017/2018
10 Remscheid, Kippdorfstraße 6 - 24 Industrial park 191 27,021 26,594 0.9 82.9 % 0.5 3.59 10.7 8.9 % Q3-2017/2018
11 Neustadt-Glewe, Brauereistraße 30 - 35 Production & logistics 5 11,081 10,932 0.3 100.0 % 3.4 1.99 2.4 10.9 % Q2-2017/2018
12 Dortmund, Hannöversche Straße 22 Industrial park 40 24,776 20,777 0.8 84.7 % 3.4 3.50 9.0 8.6 % Q3-2017/2018
13 Bochum, Kantstraße 10, 18-20 Industrial park 10 3,272 3,272 0.2 100.0 % 6.4 5.04 2.9 7.2 % Q3-2017/2018
14 Witten, Rüsbergstr. 70 Industrial park 35 11,304 7,887 0.4 91.1 % 3.2 3.65 4.0 9.3 % Q3-2017/2018
15 Ronnenberg, Berliner Str. 1-3 Production & logistics 5 31,099 30,099 0.8 89.7 % 1.4 2.50 10.1 8.2 % Q4-2017/2018
16 Elchingen, Dieselstraße 10 Production & logistics 1 7,690 3,258 0.2 100.0 % 8.3 4.29 3.1 5.4 % Q3-2017/2018
17 Lichtenfels, Bamberger Str. 58-60 Production & logistics 1 28,404 16,356 0.9 100.0 % 8.3 4.57 10.4 8.6 % Q3-2017/2018
18 Meschede, Am Steinbach 8 Industrial park 4 6,563 6,563 0.2 100.0 % 0.5 2.46 2.3 8.6 % Q3-2017/2018
19 Hattingen, Hufeisenstraße 6-8 Industrial park 5 2,580 2,580 0.1 100.0 % 2.0 3.85 1.6 7.5 % Q4-2017/2018
20 Meerbusch, Fritz-Wendt-Str. 5 Logistics 4 13,380 13,380 0.2 19.8 % 3.3 7.61 9.5 2.5 % Q4-2017/2018
21 Wildau, Chaussestraße 3 Logistics 89 16,808 14,307 1.0 96.2 % 0.9 6.24 14.5 7.1 % Q4-2017/2018
22 Fehrbellin, An der Plantage 15 Logistics 1 2,700 1,400 0.1 100.0 % 1.1 4.29 1.1 7.8 % Q2-2018/2019
23 Schleiz, Industriestraße 11 Production & logistics 1 5,929 5,929 0.2 100.0 % 4.9 3.20 2.9 8.0 % Q1-2018/2019
24 Bremen, Am Heidbergstift 6 Production & logistics 14 9,903 9,496 0.4 100.0 % 3.3 3.68 5.3 7.9 % Q1-2018/2019
25 Schortens II, Roffhausener Landstraße 18c Logistics 29 29,909 29,909 0.2 29.3 % 0.3 1.44 2.3 6.6 % Q1-2018/2019
46Deutsche Industrie REIT-AG Annual report 2019/2020
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
26 Wismar, Am Westhafen 1-3c Production & logistics 15 11,873 5,812 0.3 95.9 % 2.7 2.84 3.9 8.1 % Q1-2018/2019
27 Simmern, Argenthaler Str. 11 Production & logistics 6 127,517 20,905 1.0 100.0 % 6.8 4.16 14.0 7.5 % Q1-2018/2019
28 Schwerin, Werkstraße 710 - 714, 717 - 721 Industrial park 16 19,451 19,451 0.7 100.0 % 4.0 2.84 7.2 9.3 % Q2-2018/2019
29 Berlin, Gradestraße, Britzer Damm Production & logistics 7 10,034 8,816 0.2 89.7 % 2.3 2.39 5.5 4.2 % Q2-2018/2019
30 Münster, Schleebrüggenkamp 15 Production & logistics 1 2,889 2,889 0.1 100.0 % 3.3 3.81 1.9 7.1 % Q2-2018/2019
31 Regensburg, Donaustaufer Straße 378 Production & logistics 19 19,699 19,699 0.7 100.0 % 3.3 2.75 8.2 8.1 % Q2-2018/2019
32 Wolfsratshausen, Pfaffenriederstraße 5 u. 7 Production & logistics 4 30,267 30,267 1.8 100.0 % 3.3 4.93 24.4 7.3 % Q2-2018/2019
33 Dinslaken, Thyssenstraße 93 Production & logistics 38 4,768 3,259 0.1 67.7 % 1.6 3.54 1.5 6.8 % Q2-2018/2019
34 Solingen, Nümmener Feld 10 Logistics 23 25,847 24,852 1.0 96.2 % 2.7 3.65 16.5 6.3 % Q1-2018/2019
35 Bad Waldsee, Steinstraße 28 Logistics 3 46,350 46,350 2.6 100.0 % 8.3 4.60 33.5 7.6 % Q2-2018/2019
36 Zella-Mehlis, Am Köhlersgehäu 6 Production & logistics 9 30,901 19,391 0.6 98.4 % 6.7 2.61 7.6 8.1 % Q3-2018/2019
37 Schortens III, Roffhausener Landstraße 18c Production & logistics 11 3,719 3,612 0.0 40.5 % 1.8 1.68 0.3 10.1 % Q2-2018/2019
38 Duisburg, Eisenbahnstraße Production & logistics 8 16,221 16,221 0.5 100.0 % 8.3 2.57 7.4 6.8 % Q2-2018/2019
39 Halberstadt, Am Sülzegraben 17 Production & logistics 2 1,500 1,500 0.0 100.0 % 7.3 2.33 0.4 9.9 % Q3-2018/2019
40 Remscheid, Rosentalstraße 22 Production & logistics 1 16,245 16,245 0.3 100.0 % 4.3 1.63 5.4 5.9 % Q4-2018/2019
41 Remscheid, Víeringhausen 118 Production & logistics 1 35,490 11,933 0.2 100.0 % 4.3 1.64 4.2 5.5 % Q4-2018/2019
42 Freisen, Industriegelände Production & logistics 1 44,084 44,084 0.9 100.0 % 4.3 1.79 13.2 7.2 % Q4-2018/2019
43 Essingen, Streichhoffeld 1 u. 3 Logistics 16 32,809 32,809 1.6 100.0 % 5.3 3.92 20.8 7.5 % Q3-2018/2019
44 Aalen, Ulmer Straße 82-84 Production & logistics 8 9,711 9,711 1.1 100.0 % 7.9 9.41 9.4 11.7 % Q3-2018/2019
45 Rosengarten, Neue Str. 1 Production & logistics 32 20,368 20,368 0.4 100.0 % 0.0 1.73 4.5 9.4 % Q3-2018/2019
46 Dortmund, Westfaliastraße 187 Logistics 3 3,508 3,508 0.2 100.0 % 1.3 5.71 3.1 7.8 % Q4-2018/2019
47 Barleben, Im Hasenwinkel 5 Production & logistics 2 35,411 10,400 0.5 100.0 % 8.8 4.13 6.5 7.9 % Q4-2018/2019
48 Eschenbach, Gossenstraße 51 Production & logistics 3 6,834 6,510 0.3 100.0 % 8.3 3.42 3.6 7.3 % Q4-2018/2019
49 Bad Oeynhausen, Unterer Sundern 11 Logistics 9 12,773 12,773 0.4 100.0 % 3.8 2.55 4.0 9.9 % Q4-2018/2019
49 Properties with transfer before 01/10/2019 1,193 1,152,557 908,775 32.8 88.6 % 4.6 3.34 420.7 7.8 %
47Deutsche Industrie REIT-AG The Real Estate Portfolio
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
26 Wismar, Am Westhafen 1-3c Production & logistics 15 11,873 5,812 0.3 95.9 % 2.7 2.84 3.9 8.1 % Q1-2018/2019
27 Simmern, Argenthaler Str. 11 Production & logistics 6 127,517 20,905 1.0 100.0 % 6.8 4.16 14.0 7.5 % Q1-2018/2019
28 Schwerin, Werkstraße 710 - 714, 717 - 721 Industrial park 16 19,451 19,451 0.7 100.0 % 4.0 2.84 7.2 9.3 % Q2-2018/2019
29 Berlin, Gradestraße, Britzer Damm Production & logistics 7 10,034 8,816 0.2 89.7 % 2.3 2.39 5.5 4.2 % Q2-2018/2019
30 Münster, Schleebrüggenkamp 15 Production & logistics 1 2,889 2,889 0.1 100.0 % 3.3 3.81 1.9 7.1 % Q2-2018/2019
31 Regensburg, Donaustaufer Straße 378 Production & logistics 19 19,699 19,699 0.7 100.0 % 3.3 2.75 8.2 8.1 % Q2-2018/2019
32 Wolfsratshausen, Pfaffenriederstraße 5 u. 7 Production & logistics 4 30,267 30,267 1.8 100.0 % 3.3 4.93 24.4 7.3 % Q2-2018/2019
33 Dinslaken, Thyssenstraße 93 Production & logistics 38 4,768 3,259 0.1 67.7 % 1.6 3.54 1.5 6.8 % Q2-2018/2019
34 Solingen, Nümmener Feld 10 Logistics 23 25,847 24,852 1.0 96.2 % 2.7 3.65 16.5 6.3 % Q1-2018/2019
35 Bad Waldsee, Steinstraße 28 Logistics 3 46,350 46,350 2.6 100.0 % 8.3 4.60 33.5 7.6 % Q2-2018/2019
36 Zella-Mehlis, Am Köhlersgehäu 6 Production & logistics 9 30,901 19,391 0.6 98.4 % 6.7 2.61 7.6 8.1 % Q3-2018/2019
37 Schortens III, Roffhausener Landstraße 18c Production & logistics 11 3,719 3,612 0.0 40.5 % 1.8 1.68 0.3 10.1 % Q2-2018/2019
38 Duisburg, Eisenbahnstraße Production & logistics 8 16,221 16,221 0.5 100.0 % 8.3 2.57 7.4 6.8 % Q2-2018/2019
39 Halberstadt, Am Sülzegraben 17 Production & logistics 2 1,500 1,500 0.0 100.0 % 7.3 2.33 0.4 9.9 % Q3-2018/2019
40 Remscheid, Rosentalstraße 22 Production & logistics 1 16,245 16,245 0.3 100.0 % 4.3 1.63 5.4 5.9 % Q4-2018/2019
41 Remscheid, Víeringhausen 118 Production & logistics 1 35,490 11,933 0.2 100.0 % 4.3 1.64 4.2 5.5 % Q4-2018/2019
42 Freisen, Industriegelände Production & logistics 1 44,084 44,084 0.9 100.0 % 4.3 1.79 13.2 7.2 % Q4-2018/2019
43 Essingen, Streichhoffeld 1 u. 3 Logistics 16 32,809 32,809 1.6 100.0 % 5.3 3.92 20.8 7.5 % Q3-2018/2019
44 Aalen, Ulmer Straße 82-84 Production & logistics 8 9,711 9,711 1.1 100.0 % 7.9 9.41 9.4 11.7 % Q3-2018/2019
45 Rosengarten, Neue Str. 1 Production & logistics 32 20,368 20,368 0.4 100.0 % 0.0 1.73 4.5 9.4 % Q3-2018/2019
46 Dortmund, Westfaliastraße 187 Logistics 3 3,508 3,508 0.2 100.0 % 1.3 5.71 3.1 7.8 % Q4-2018/2019
47 Barleben, Im Hasenwinkel 5 Production & logistics 2 35,411 10,400 0.5 100.0 % 8.8 4.13 6.5 7.9 % Q4-2018/2019
48 Eschenbach, Gossenstraße 51 Production & logistics 3 6,834 6,510 0.3 100.0 % 8.3 3.42 3.6 7.3 % Q4-2018/2019
49 Bad Oeynhausen, Unterer Sundern 11 Logistics 9 12,773 12,773 0.4 100.0 % 3.8 2.55 4.0 9.9 % Q4-2018/2019
49 Properties with transfer before 01/10/2019 1,193 1,152,557 908,775 32.8 88.6 % 4.6 3.34 420.7 7.8 %
48Deutsche Industrie REIT-AG Annual report 2019/2020
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
50 Schwerin, Grevesmühlener Str. 18a Logistics 2 7,715 2,715 0.2 100.0 % 3.3 4.77 2.0 7.9 % Q1-2019/2020
51 Düren, Kreuzauer Str. 33 Production & logistics 2 77,111 40,850 1.2 100.0 % 14.0 2.33 12.1 9.9 % Q1-2019/2020
52 Linthe, Kampaweg 1 Logistics 46 10,165 9,541 0.1 47.7 % 0.3 2.00 3.2 4.2 % Q1-2019/2020
53 Altlandsberg, Seeberger Str. 10 (Hönower Chaussee 1) Logistics 2 11,534 8,053 0.5 100.0 % 3.2 5.12 8.0 6.2 % Q1-2019/2020
54 Westhausen, Dr.-Rudolf-Schieber-Str. 11, 13, 15 Industrial park 63 16,295 15,880 0.7 71.9 % 1.8 5.20 9.5 7.7 % Q1-2019/2020
55 Hannover, Wiesenauer Straße 11, 13 Industrial park 18 27,572 24,396 0.8 72.9 % 2.0 3.61 12.4 6.8 % Q1-2019/2020
56 Bocholt, Hindenburgstr. 19, Kaiser- Wilhelm-Str. 39, 41, 42 Logistics 4 12,900 12,692 0.6 100.0 % 8.6 3.95 9.0 6.7 % Q1-2019/2020
57 Unna, Heinrich-Hertz-Str. 14, 18 Industrial park 18 6,869 6,693 0.6 99.8 % 2.3 7.10 6.6 9.1 % Q2-2019/2020
58 Löbichau, Leedenstraße 3 Logistics 1 17,891 7,455 0.2 100.0 % 3.8 2.68 2.9 8.2 % Q2-2019/2020
59 Wesel, Schepersweg 41-61 Industrial park 18 22,273 16,590 0.1 5.2 % 5.3 3.90 7.1 1.0 % Q1-2019/2020
60 Kloster Lehnin, Damsdorfer Hauptstraße 36B Logistics 3 13,142 13,142 0.5 100.0 % 0.0 2.88 3.3 13.7 % Q2-2019/2020
61 Dinslaken, Lanterstr. 34 Production & logistics 1 22,243 3,610 0.2 100.0 % 4.1 3.66 2.0 8.4 % Q1-2019/2020
62 Wedemark, Industriestraße 44 Logistics 15 20,637 20,637 0.0 0.0 % 0.0 0.00 13.3 0.0 % Q2-2019/2020
63 Oberding, Lohstraße 22-28a Industrial park 118 49,695 49,019 3.9 78.2 % 6.5 8.35 23.5 16.7 % Q3-2019/2020
64 Mönchweiler, Am Fohrenwald 1 Production & logistics 10 29,093 29,093 0.4 45.5 % 4.0 2.73 11.4 3.8 % Q3-2019/2020
65 Osterwieck Lüttgenröder Str. 4 Production & logistics 1 6,993 6,993 0.3 100.0 % 9.8 4.00 3.1 11.0 % Q4-2019/2020
66 Hude, Heinrich-Dreyer-Str. 1 Production & logistics 6 15,441 12,041 0.3 94.4 % 4.8 2.06 3.7 7.6 % Q4-2019/2020
67 Oebisfelde, Lunapark 2 Production & logistics 4 12,515 12,515 0.2 100.0 % 2.9 1.60 2.6 9.3 % Q4-2019/2020
68 Stegelitz, Dammfeld 6 Logistics 2 12,203 12,203 0.4 100.0 % 1.3 2.78 4.3 9.4 % Q4-2019/2020
69 Lauda-Königshofen, Bahnhofstraße 70 u. 100 Production & logistics 1 16,179 16,179 0.4 100.0 % 9.8 2.01 4.3 9.0 % Q4-2019/2020
20 Properties with transfer 01/10/2019 until 30/09/2020 335 408,467 320,297 11.7 75.1 % 6.1 3.94 144.3 8.1 %
69 Portfolio as of 30/09/2020 1,528 1,561,024 1,229,072 44.5 85.1 % 5.0 3.47 565.0 7.9 %
49Deutsche Industrie REIT-AG The Real Estate Portfolio
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
50 Schwerin, Grevesmühlener Str. 18a Logistics 2 7,715 2,715 0.2 100.0 % 3.3 4.77 2.0 7.9 % Q1-2019/2020
51 Düren, Kreuzauer Str. 33 Production & logistics 2 77,111 40,850 1.2 100.0 % 14.0 2.33 12.1 9.9 % Q1-2019/2020
52 Linthe, Kampaweg 1 Logistics 46 10,165 9,541 0.1 47.7 % 0.3 2.00 3.2 4.2 % Q1-2019/2020
53 Altlandsberg, Seeberger Str. 10 (Hönower Chaussee 1) Logistics 2 11,534 8,053 0.5 100.0 % 3.2 5.12 8.0 6.2 % Q1-2019/2020
54 Westhausen, Dr.-Rudolf-Schieber-Str. 11, 13, 15 Industrial park 63 16,295 15,880 0.7 71.9 % 1.8 5.20 9.5 7.7 % Q1-2019/2020
55 Hannover, Wiesenauer Straße 11, 13 Industrial park 18 27,572 24,396 0.8 72.9 % 2.0 3.61 12.4 6.8 % Q1-2019/2020
56 Bocholt, Hindenburgstr. 19, Kaiser- Wilhelm-Str. 39, 41, 42 Logistics 4 12,900 12,692 0.6 100.0 % 8.6 3.95 9.0 6.7 % Q1-2019/2020
57 Unna, Heinrich-Hertz-Str. 14, 18 Industrial park 18 6,869 6,693 0.6 99.8 % 2.3 7.10 6.6 9.1 % Q2-2019/2020
58 Löbichau, Leedenstraße 3 Logistics 1 17,891 7,455 0.2 100.0 % 3.8 2.68 2.9 8.2 % Q2-2019/2020
59 Wesel, Schepersweg 41-61 Industrial park 18 22,273 16,590 0.1 5.2 % 5.3 3.90 7.1 1.0 % Q1-2019/2020
60 Kloster Lehnin, Damsdorfer Hauptstraße 36B Logistics 3 13,142 13,142 0.5 100.0 % 0.0 2.88 3.3 13.7 % Q2-2019/2020
61 Dinslaken, Lanterstr. 34 Production & logistics 1 22,243 3,610 0.2 100.0 % 4.1 3.66 2.0 8.4 % Q1-2019/2020
62 Wedemark, Industriestraße 44 Logistics 15 20,637 20,637 0.0 0.0 % 0.0 0.00 13.3 0.0 % Q2-2019/2020
63 Oberding, Lohstraße 22-28a Industrial park 118 49,695 49,019 3.9 78.2 % 6.5 8.35 23.5 16.7 % Q3-2019/2020
64 Mönchweiler, Am Fohrenwald 1 Production & logistics 10 29,093 29,093 0.4 45.5 % 4.0 2.73 11.4 3.8 % Q3-2019/2020
65 Osterwieck Lüttgenröder Str. 4 Production & logistics 1 6,993 6,993 0.3 100.0 % 9.8 4.00 3.1 11.0 % Q4-2019/2020
66 Hude, Heinrich-Dreyer-Str. 1 Production & logistics 6 15,441 12,041 0.3 94.4 % 4.8 2.06 3.7 7.6 % Q4-2019/2020
67 Oebisfelde, Lunapark 2 Production & logistics 4 12,515 12,515 0.2 100.0 % 2.9 1.60 2.6 9.3 % Q4-2019/2020
68 Stegelitz, Dammfeld 6 Logistics 2 12,203 12,203 0.4 100.0 % 1.3 2.78 4.3 9.4 % Q4-2019/2020
69 Lauda-Königshofen, Bahnhofstraße 70 u. 100 Production & logistics 1 16,179 16,179 0.4 100.0 % 9.8 2.01 4.3 9.0 % Q4-2019/2020
20 Properties with transfer 01/10/2019 until 30/09/2020 335 408,467 320,297 11.7 75.1 % 6.1 3.94 144.3 8.1 %
69 Portfolio as of 30/09/2020 1,528 1,561,024 1,229,072 44.5 85.1 % 5.0 3.47 565.0 7.9 %
50Deutsche Industrie REIT-AG Annual report 2019/2020
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
70 Euskirchen, Adolf-Halstrick-Str. 6 Production & logistics 57 41,987 39,445 1.2 100.0 % 10.0 2.38 10.5 11.5 % Q1-2020/2021
71 Oschersleben, Anderslebener Straße 159 Logistics 3 15,000 15,000 0.4 100.0 % 1.3 2.10 3.0 12.6 % Q1-2020/2021
72 Grünsfeld, Industriestraße 2 u. 6 Production & logistics 2 3,244 3,244 0.2 100.0 % 0.0 4.78 1.2 16.2 % Q1-2020/2021
73 Bielefeld, Gustav-Winkler-Str. 17 Logistics 4 12,655 12,655 0.4 89.1 % 4.3 2.66 3.6 10.0 % Q1-2020/2021
74 Metzingen, James-Watt-Str. 9 Logistics 34 16,676 16,352 0.5 93.5 % 8.3 2.66 5.5 9.4 % n.n.
75 Sembach, Junkersstr. 10 Industrial park 15 12,263 10,963 0.4 95.6 % 12.8 3.39 4.8 9.1 % n.n.
76 Gevelsberg, Mühlenstr. 5, 29-31 Industrial park 111 25,627 24,739 0.7 79.4 % 4.5 2.79 7.0 10.3 % n.n.
77 Gevelsberg, Kölner Straße 64 Production & logistics 4 32,406 32,406 1.5 100.0 % 10.3 3.92 17.0 9.0 % n.n.
8 Properties with transfer after 30/09/2020 230 159,857 154,803 5.3 94.8 % 8.6 2.92 52.6 10.1 %
69 Portfolio as of 30/09/2020 1,528 1,561,024 1,229,072 44.5 85.1 % 5.0 3.47 565.0 7.9 %
77 Proforma Portfolio 1,758 1,720,881 1,383,875 49.8 86.2 % 5.4 3.41 617.5 8.1 %
PICTURE:Löbichau, Leedenstraße
51Deutsche Industrie REIT-AG The Real Estate Portfolio
Properties TypeNo. of
commercial unitsTotal rental space in m²
Commercial rental space in m²
Annualised In place rent in m€
Ocupancy commercial
WALT in yearsIPR commercial
in €/m²Current market
value m€Yield
Quarter of transfer
70 Euskirchen, Adolf-Halstrick-Str. 6 Production & logistics 57 41,987 39,445 1.2 100.0 % 10.0 2.38 10.5 11.5 % Q1-2020/2021
71 Oschersleben, Anderslebener Straße 159 Logistics 3 15,000 15,000 0.4 100.0 % 1.3 2.10 3.0 12.6 % Q1-2020/2021
72 Grünsfeld, Industriestraße 2 u. 6 Production & logistics 2 3,244 3,244 0.2 100.0 % 0.0 4.78 1.2 16.2 % Q1-2020/2021
73 Bielefeld, Gustav-Winkler-Str. 17 Logistics 4 12,655 12,655 0.4 89.1 % 4.3 2.66 3.6 10.0 % Q1-2020/2021
74 Metzingen, James-Watt-Str. 9 Logistics 34 16,676 16,352 0.5 93.5 % 8.3 2.66 5.5 9.4 % n.n.
75 Sembach, Junkersstr. 10 Industrial park 15 12,263 10,963 0.4 95.6 % 12.8 3.39 4.8 9.1 % n.n.
76 Gevelsberg, Mühlenstr. 5, 29-31 Industrial park 111 25,627 24,739 0.7 79.4 % 4.5 2.79 7.0 10.3 % n.n.
77 Gevelsberg, Kölner Straße 64 Production & logistics 4 32,406 32,406 1.5 100.0 % 10.3 3.92 17.0 9.0 % n.n.
8 Properties with transfer after 30/09/2020 230 159,857 154,803 5.3 94.8 % 8.6 2.92 52.6 10.1 %
69 Portfolio as of 30/09/2020 1,528 1,561,024 1,229,072 44.5 85.1 % 5.0 3.47 565.0 7.9 %
77 Proforma Portfolio 1,758 1,720,881 1,383,875 49.8 86.2 % 5.4 3.41 617.5 8.1 %
52Deutsche Industrie REIT-AG Annual report 2019/2020
Key figures according to EPRAThe European Public Real Estate Association EPRA
EPRA is a non-profit organisation based in Brussels
that represents the interests of the European real
estate industry and has developed standardised ratios
that ensure a high level of comparability between real
estate companies. Since June 2018, DIR has been a
full member of EPRA and publishes the EPRA key
figures according to Best Practice Recommendations
(BPR) for the first time since the 2017/2018 financial
year.
For the 2018/2019 financial year, DIR received the
EPRA BPR Bronze Award for the first time for the
EPRA reporting in its annual report.
For the financial year 2019/2020 the EPRA KPIs of DIR are as follows:
EPRA EarningsThe EPRA Earnings represent the result from the
ongoing property management. Valuation effects
and proceeds from disposals are not considered.
TEUR 2019/2020 2018/2019
Period result 50,820.5 48,671.9
– Valuation Result –36,981.7 –37,552.1
– Sale result 0.0 –57.0
EPRA Earnings 13,838.9 11,062.8
EPRA Earnings per share, EUR 0.47 0.51
EPRA net initial yield (EPRA NIY) and EPRA „Topped-up“ NIYThe EPRA initial net return is the annualised annual
rent less non-recoverable management costs in
relation to the current portfolio value and, thus,
represents the current portfolio return.
EPRA „Topped-up“ NIY includes temporarily existing
tenant incentives e.g. rent-free periods. Currently
there are no material rent-free incentives at DIR.
TEUR 2019/2020 2018/2019
Market value of investment properties 585,918.7 392,849.0
+ Transaction costs 37,805.0 28,169.8
Gross market value of investment properties
623,624.7 421,018.8
Annualised rental income 44,476.5 33,141.0
– Non-recoverable management costs
–8,895.3 –6,628.2
Annualised net rental income 35,581.2 26,512.8
+ Rent-free periods 0.0 0.0
Annualised „Topped-up“ net rental income
35,581.2 26,512.8
EPRA initial net yield 5.7 % 6.3 %
EPRA „Topped-up“ NIY 5,7 % 6.3 %
EPRA cost ratioThe EPRA cost ratios relate the current property-
specific management expenses as well as the
administrative and management expenses to the
rental income and, therefore, show the cost burden
of the management platform in relation to the
rental income.
53Deutsche Industrie REIT-AG Key figures according to EPRA
TEUR 2019/2020 2018/2019
Expenses from property management –9,495.7 –4,530.8
+ Personnel expenses –854.2 –808.3
+ Other recurring operating expenses –1,958.4 –1,161.7
– Other income 175.6 373.7
EPRA costs A incl. direct vacancy costs –12,132.6 –6,127.0
– direct vacancy costs –1,273.4 –454.1
EPRA costs B excl. direct vacancy costs –13,406.0 –6,581.1
Rental income 40,781.3 25,481.2
EPRA cost ratio A 29.8 % 24.0 %
EPRA cost ratio B 32.9 % 25.8 %
EPRA vacancy rateIn contrast to pure vacancy, the EPRA vacancy rate
reflects the economic vacancy based on the market
rent of the vacant space in relation to the total rent of
the portfolio at the balance sheet date. The estimated
underlying market rents result from the real estate
appraisals of the external and independent appraiser
CBRE GmbH, Berlin. The increase of EPRA vacancy
rate mainly results from a higher portion of vacant
space in the portfolio which can be let at (higher)
market rents.
TEUR 30/09/2020 30/09/2019
Estimated Rental Value of vacant space
5,927.5 2,329.8
Estimated rental value of the whole portfolio
45,645.6 34,346.1
EPRA vacancy rate 13.0 % 6.8 %
Like-for-Like portfolioFrom a like-for-like perspective which means without
the inclusion of acquisitions or disposals within the
last financial year, the key figures of the property
portfolio developed as follows:
TEUR 30/09/2020 30/09/2019Diffe-rence
Net rent / m2 / per month 3.34 3.34 –0.1 %
Vacancy (%) 11.4 % 11.1 2.2 %
WALT (years) 4.6 4.9 – 7.0 %
EPRA NAV / EPRA NNNAVThe EPRA NAV represents the long-term value of the
Company as at the balance sheet date. In this respect,
short-term valuation effects of financial instruments
from hedging relationships or deferred tax effects are
not taken into account and eliminated from equity.
The EPRA NAV per share (undiluted) as of
30 September 2020 is as follows:
TEUR 30/09/2020 30/09/2019
Equity 377,200.0 181,463.2
NAV 377,200.0 181,463.2
Fair value of financial derivatives –491.4 0.0
EPRA NAV 376,708.6 181,463.2
No. of shares 32,079,505 23,451,945
EPRA NAV per share 11.74 7.74
The so-called EPRA NNNAV, on the other hand,
depicts the short-term intrinsic value of the Company
by disclosing hidden reserves and burdens and
includes the shortterm valuation effects such as
from interest hedges and deferred taxes.
The EPRA NNNAV is intended to represent the cur-
rent net asset value of a real estate company, taking
into account current market values for assets and
liabilities.
54Deutsche Industrie REIT-AG Annual report 2019/2020
The EPRA NNNAV per share on 30 September 2020 is
as follows:
TEUR 30/09/2020 30/09/2019
EPRA NAV 376,708.6 181,463.2
Fair value of financial instruments 491.4 0.0
Deferred tax 0.0 0.0
EPRA NNNAV 377,200.0 181,463.2
EPRA NNNAV per share, EUR 11.76 7.74
New EPRA-NAV reporting standard
EPRA-NRVThe EPRA-Net Reinstatement Value (EPRA NRV) is
part of the new EPRA reporting standard for the EPRA
NAV. It aims to clarify the long-term net asset value of
the portfolio. The EPRA-NRV is calculated by adjus-
ting assets and liabilities for which no sustained in-
crease in value is expected under normal circumstan-
ces, such as deferred taxes on valuation gains or the
market-related change in financial derivatives. Again,
costs which would be necessary to rebuild the compa-
ny on the basis of its current financing and capital
structure, such as acquisition costs or real estate trans-
fer tax, are included in the key figure.
EPRA-NTAEPRA Net Tangible Asset (EPRA-NTA) is based on the
assumption that a company buys and sells properties,
which is why deferred tax liabilities can be realised.
EPRA-NDVIt is in the interest of a company‘s shareholders to
consider all liabilities in their entirety and the resul-
ting company value in the event that company assets
are sold and/or existing liabilities are not held until
their maturity. The EPRA net disposal value (EP-
RA-NDV) is a key figure that provides information
about the full amount of taxes, financial instruments
and certain adjustments that are calculated on the
basis of their liability, including the tax risk not
shown in the balance sheet, after deduction of all
resulting taxes. The EPRA-NDV should not be consi-
dered as a kind of „liquidation NAV“, as the under-
lying fair values in many cases do not represent liqui-
dation values as such.
TEUR 2019/2020 2018/2019
EPRA-NAV EPRA- NRV EPRA-NTA EPRA-NDV EPRA-NAV EPRA- NRV EPRA-NTA EPRA-NDV
IFRS Equity attributable to shareholders
377,200.0 377,200.0 377,200.0 377,200.0 181,463.2 181,463.2 181,463.2 181,463.2
Number of shares outstanding 32,079,505 32,079,505 32,079,505 32,079,505 23,451,945 23,451,945 23,451,945 23,451,945
Undiluted NAV per share 11.76 € 11.76 € 11.76 € 11.76 € 7.74 € 7.74 € 7.74 € 7.74 €
minus fair value of financial derivatives
–491.4 0.0
undiluted EPRA-NAV 376,708.6 181,463.2
undiluted EPRA NAV per share
11.74 € 7.74 €
Include / Exclude
I) Hybrid instruments 8,736.0 8,736.0 8,736.0 8,736.0 1040.0 1040.0 1040.0 1040.0
Interest expense for convertible bond
832 208
Valuation result for convertible bond
7,904 832
55Deutsche Industrie REIT-AG Key figures according to EPRA
TEUR 2019/2020 2018/2019
EPRA-NAV EPRA- NRV EPRA-NTA EPRA-NDV EPRA-NAV EPRA- NRV EPRA-NTA EPRA-NDV
Diluted NAV 385,936.0 385,936.0 385,936.0 385,936.0 182,503.2 182,503.2 182,503.2 182,503.2
Include:
II. a) Revaluation of IP (if IAS 40 cost option is used)
0.0 0.0 0.0 0.0 0.0 0.0
II. b) Revaluation of IPUC (if IAS 40 cost option is used)
0.0 0.0 0.0 0.0 0.0 0.0
II. c) Revaluation of other non-current investments
0.0 0.0 0.0 0.0 0.0 0.0
III.) Revaluation of tenant leases held as finance leases
0.0 0.0 0.0 0.0 0.0 0.0
IV.) Revaluation of trading properties
0.0 0.0 0.0 57.0 57.0 57.0
Diluted NAV at Fair Value 385,936.0 385,936.0 385,936.0 385,936.0 182,503.2 182,560.2 182,560.2 182,560.2
Exclude:
V) Deferred tax in relation to fair value gains of IP
0.0 0.0 0.0 0.0
VI) Fair value of financial instruments
–491.4 –491.4 0.0 0.0
VII) Goodwill as a result of deferred tax
0.0 0.0 0.0 0.0 0.0 0.0
VIII. a) Goodwill as per the IFRS balance sheet
0.0 0.0 0.0 0.0
VIII. b) Intangibles as per the IFRS balance sheet
–3.4 –1.8
Include:
IX) Fair value of fixed interest rate debt
0.0 0.0
X) Revaluation of intangibles to fair value
0.0 0.0
XI) Real estate transfer tax 0.0 0.0 0.0 0.0
NAV 385,936.0 385,444.6 385,441.2 385,936.0 182,503.2 182,560.2 182,558.5 182,560.2
potential convertible shares 2,266,165.0 2,266,165.0 2,266,165.0 2,266,165.0 2,248,648.0 2,248,648.0 2,248,648.0 2,248,648.0
Fully diluted number of shares
34,345,670.0 34,345,670.0 34,345,670.0 34,345,670.0 25,700,593.0 25,700,593.0 25,700,593.0 25,700,593.0
NAV per share 11.24 € 11.22 € 11.22 € 11.24 € 7.10 € 7.10 € 7.10 € 7.10 €
Deutsche Industrie REIT-AG Annual report 2019/2020
56
1. Fundamentals of the Deutsche Industrie REIT-AG 58
1.1 Business model and strategy 58
1.2 Structure and controlling system 59
1.3 Research and Development 59
2. Economic report 60
2.1 Macroeconomic development 60
2.2 Development of the German Light Industrial real estate market 61
2.3 Business performance 62
2.4 Financial position, liquidity and financial performance 65
3. Opportunities and Risk Report and Forecast Report 70
3.1 Opportunities and Risk Report 70
3.2 Forecast report 79
4. Remuneration report 80
5. Dependency report and overall assessment 83
6. Information relevant for takeovers 84
7. Statement on Corporate Governance 86
Management Report
PICTURE:Schwerin, Grevesmühlener Str.
Deutsche Industrie REIT-AG Annual report 2019/2020
58
1. Fundamentals of the Deutsche Industrie REIT-AG
1.1 Business model and strategy
Deutsche Industrie REIT-AG ("Deutsche Industrie",
"DIR" or the "Company") was founded as Jägersteig
Beteiligungs GmbH in November 2014. In October
2017, it was renamed Deutsche Industrie Grundbesitz
AG. At the beginning of 2018, the status of a REIT
("Real Estate Investment Trust") was obtained with the
associated income tax exemption. Since then the
company has been called Deutsche Industrie REIT-AG.
The share has been listed on the regulated market of
the Berlin Stock Exchange since 7 December 2017.
Since 19 December 2018, the share has also been listed
in the sub-segment of the regulated market with
additional post-admission obligations (Prime Standard)
on the Frankfurt Stock Exchange and thus also in
XETRA.
The company's business activities focus on the
acquisition, leasing, management, and sale of Light
Industrial real estate in Germany. "Light Industrial" is a
generic term for many different types of industrial
operations and includes not only the activities of
storage and distribution of commercial goods but also
their administration and production. Light Industrial
real estate" is therefore typically commercial yards,
logistics real estate (warehouses, transhipment halls,
distribution halls and special warehouses) or industrial
real estate, which is used by commercial users in most
cases for storage, packaging or as smaller production
facilities.
The company's goal is to generate steady, sustainable,
and profit-oriented earnings growth through further
acquisitions, ongoing investments in the property
portfolio and strategic asset and property manage-
ment. The company intends to invest throughout
Germany with a focus on good micro-locations. In
addition, the Company intends to take advantage of
the favourable financing terms currently available on
the market to finance further property acquisitions.
The Company intends to achieve its strategic goals
with the following measures:
• Acquisition of further Light Industrial real estate
with potential for value enhancement.
• Exploitation of available upside potential through
rent increases, new lettings, and revitalisation of
properties.
• Active, strategic portfolio management to expand
and improve the real estate portfolio and the
ongoing review of existing properties regarding
their added value within the overall portfolio.
• Benefit from the advantages of the status as a
REIT-AG.
Deutsche Industrie REIT-AG Fundamentals of the Deutsche Industrie REIT-AG
59
1.2 Structure and controlling system
Under company law, DIR consists of a corporation
that holds and accounts for all real estate. This and
the REIT status enable the company to have particu-
larly lean administrative structures. In addition, the
existing network, the management's many years of
experience and the lean structures help to achieve a
high purchasing speed, which is advantageous in
transaction processes.
The largest shareholder of DIR is currently Obotritia
Capital KGaA ("Obotritia") with its personally liable
partner Rolf Elgeti, which together with its subsidiari-
es held around 29.7% of the shares on 30 September
2020. DIR uses Obotritia's business premises and IT
infrastructure and, to some extent, its staff, which is
passed on to the company on a pro rata basis via a
levy. DIR is obliged to prepare a dependency report
for the period as a subsidiary of Obotritia KGaA in
accordance with Section 312 of the German Stock
Corporation Act (AktG).
The DIR is managed based on financial indicators
such as initial yield (annualised net cold rent divided
by purchase price), FFO (Funds From Operations),
aFFO (adjusted Funds From Operations), LTV (Loan
To Value) and EPRA NAV (EPRA Net Asset Value). The
key performance indicator is the FFO. The calcula-
tions for LTV, EPRA-NAV, FFO and aFFO can be found
in the tables contained in "2.4 Financial position,
liquidity, and financial performance" for the respecti-
ve key figures.
Non-financial control parameters of DIR are the
annualised net cold rent, the occupancy rate, and the
Weighted Average Lease Term (WALT) at individual
property level and at the overall portfolio level. Due
to the acquisition of properties with higher vacancy
rates and short remaining lease terms in line with the
business model, these non-financial indicators are
subject to significant fluctuations.
DIR also has planning instruments such as corporate
planning and rolling liquidity planning, which are
used to control operational business development.
1.3 Research and development
As part of its business purpose, DIR does not carry out
research and development activities and is not
dependent on licences and patents.
Deutsche Industrie REIT-AG Annual report 2019/2020
60
2. Economic report
2.1 Macroeconomic development
Due to the weakness in industry and global trade,
the global economic upturn slowed down towards
the end of 2019.1 Global economic activity came to
an abrupt, albeit temporary, halt as a result of the
COVID-19 pandemic and also resulting in lockdowns
in many parts of the world. According to an econo-
mic forecast published in September 2020 by the Kiel
Institute for the World Economy (IfW), economic
performance in the first half of 2020 fell by almost
10 % overall as a result of this exogenous shock: After
an initial decline of 3 % in the first quarter of 2020,
global production plunged by a further 7 % in the
second quarter of 2020. After the lifting of the strict
lockdowns in May 2020, a phase of recovery set in
again by late summer 2020, leading to high global
economic growth rate expectations for the third
quarter of 2020.2
The COVID-19 pandemic also affected the German
economy. The German economy had been just about
to get back on track following the downturn in the
previous year.3 According to the Federal Statistical
Office (Destatis), gross domestic product (GDP) in the
second quarter of 2020 was down 9.7 % on the first
quarter of 2020 (adjusted for price, seasonal and ca-
lendar effects). The slump in the German economy
was therefore much sharper than during the financial
market and economic crisis of 2008/2009 (–4.7 %
in the first quarter of 2009) and thus the sharpest
decline since quarterly GDP calculations for Germany
began in 1970. In the first quarter of 2020 the
1 Kiel Economic Report No. 61 (2019/Q4) of 11 December 2019: World Economy. Winter 2019, page 2.
2 Kiel Economic Report No. 69 (2020/Q3) of 16 September 2020: World Economy. Autumn 2020, page 3.
3 Kiel Economic Report No. 65 (2020/Q1) of 11 March 2020: German Economy. Spring 2020, page 3.
4 Press Release Destatis of 25 August 2020.
5 Deutsche Bundesbank: Monthly Report. August 2020, pages 7-8, 10.
6 Kiel Economic Report. No. 71 (2020/Q3) of 16 September 2020: German Economy in Autumn 2020, page 3.
7 www.finanzen.net/leitzins/, last reviewed on 19. Oktober 2020.
German economy had already contracted by –2.0 %.
Economic output had remained unchanged in the
fourth quarter of 2019 and in the third quarter of
2019, GDP had still risen by 0.3 %.4
According to the Bundesbank, following the collapse
in economic output in the first half of 2020 almost
everywhere in the world, economic activity began to
recover in the beginning of the second half of the
year. Since an easing of the containment measures
had been implemented at the end of April 2020, a
certain normalisation had occurred in many coun-
tries. Nevertheless, there would still be a great danger
of setbacks in the further course of the pandemic. The
economic consequences of the corona pandemic and
the extensive measures to contain it had also domi-
nated events on the international financial markets
in spring and summer 2020.5
According to lfW, gross domestic product can be
expected to decline by 5.5 % in the current year and
rise by 4.8 % in the coming year.6
The interest rate level in the eurozone remains at
a historic low. On 16 March 2016, the European
Central Bank (ECB) cut the key interest rate by 5 basis
points, bringing the main refinancing rate to 0.00 %.7
This means that real estate companies such as
Deutsche Industrie REIT-AG, which finance their
portfolios to a large extent by borrowing, continue
to enjoy fundamentally favourable conditions for
financing their investments.
Deutsche Industrie REIT-AG Economic report
61
2.2 Development of the German Light Industrial real estate market
The company specializes in the acquisition, rental,
management and sale of Light Industrial real estate,
which can be divided primarily into commercial
yards, logistics real estate (warehouses, handling
halls, distribution halls and special warehouses) and
industrial real estate, which is used by commercial
users in most cases for storage, packaging or as
smaller production facilities. The market of Light
Industrial real estate in Germany, thus defined by the
company, is dominated by the submarket of logistics
real estate, which is therefore also of major importan-
ce to the company's business activities. Therefore, the
market for logistics real estate will be described in the
following.
The last survey on the turnover of the European
logistics market for 2018 was estimated at 1,120 €
billion (approx. +6.7 % compared to the previous
year), forecasts predict a slight increase to 1,150 €
billion (approx. +2.7 % compared to 2018).8 With a
reported volume of around 279 € billion or 24.8
percent, Germany will probably again account for
one of the largest shares in 2019.9 For the year 2018,
the total volume of logistics services in Germany was
distributed relatively evenly, with around 51 % of the
total volume being provided by external logistics
service providers. The remaining volume of approx.
49 % was provided internally by logistics services
from industry, trade, etc.10 Apart from the geographi-
cally advantageous location in the centre of Europe
8 „Market volume of the logistics markets in Europe in the years 2008 to 2018“, available on 27 November 2020 available at https://de.statista.com/statistik/daten/studie/204132/umfrage/volumen-des-logistikmarktes-in-europa published by Statista GmbH
9 „Logistics Revenues and Employment “, available on 28 October 2020, available at https://www.bvl.de/service/zahlen-daten-fakten/umsatz-und-beschaeftigung, published by the Federal Association for Logistics (BVL) e.V.
10 „Logistics 2020 – Structure and Value Shifts as a Challenge” available October 2020, published by Prof. Do. Christian Kille and Markus Meißner, p.16
11 „German Exports in 2019: +0,8 % for the year 2018“, available on 27 October 2020, available at https://www.destatis.de/DE/Presse/Pressemitteilungen/2020/02/PD20_039_51.html#:~:text=Allerdings%20verlor%20das%20Wachstum%20im,104%2C1%20Milliarden%20Euro%20importiert, published by Statista GmbH
12 „Number of People Employed in the Economic Sector in Germany in the Year 2019”, available on 27 October 2020, available at https://de.statista.com/statistik/daten/studie/1248/umfrage/anzahl-der-erwerbstaetigen-in-deutschland-nach-wirtschaftsbereichen/, published by Statista GmbH
13 „Deutsche Bundesbank - The German Economy at a glance “, available on 27 October 2020, available at https://www.bundesbank.de/resource/blob/810556/6cd4b11347fbcb91f13707d10db97ba6/mL/000-tabelle-deutsche-wirtschaft-data.pdf, published by Deutsche Bundesbank
14 ” Private Consumer Spending and Available Income, supplement to subject-matter series 18 – 2. quarter 2020” published on 10 October 2020 by the Statistical Bundesamt, p. 7
15 „Deutsche Bundesbank - The German Economy at a Glance”, available on 27 October 2020, available at https://www.bundesbank.de/resource/blob/810556/6cd4b11347fbcb91f13707d10db97ba6/mL/000-tabelle-deutsche-wirtschaft-data.pdf, published by Deutsche Bundesbank
16 „KEP Study 2019“ published in June 2020 by the Federal Association of Parcel and Express Logistics, p.19
with an extensive freeway and rail network and a
continuing leading international position despite the
current pandemic, the development of the logistics
market as a whole continues to be favoured by the
continuing German export surplus.11
In 2019, the share of employees in the manufacturing
sector of the industrial sectors excluding construction
was around 8.36 million.12 Incoming orders in the
industrial sector excluding construction fell by
around 5.8 % compared with the previous year, while
price-adjusted gross domestic product also declined
slightly by around 0.6 % in the same period compa-
red with the previous year's higher growth rate of
around 1.3 %.13
Domestic consumer spending, which has a direct and
indirect impact on logistics and production revenues,
rose to around 1,755.65 € billion in 2019, an increase
of around 2.9 % year-on-year.14 Financial assets of
private households increased by approx. 7.7 % and
the debt ratio by approx. 4.6 % in the same period.15
The dispatch of goods and parcels by courier, express
and parcel services (CEP) have recorded a steep
increase in consignment volumes and revenues in
recent years. Despite the slight economic downturn
and declining deliveries in the B2B business, a
consignment volume increase of about 3.8 % and a
revenue increase of about 4.4 % is reported for 2019
due to the continued steady growth of the B2C
market.16 In line with previous years, online trade
sales repeatedly exceeded the previous year's result
and grew by approx. 11.6 % to around 72.6 € billion
Deutsche Industrie REIT-AG Annual report 2019/2020
62
in 2019. A further increase in sales of approx. 9.2 %
was already recorded for the first half of 2020.17 18 In
line with this sales trend, the B2C CEP market also
experienced a further increase in the first half of
2020, with a growth forecast of 3.5 % to 7.0 % for
2020.19 In order to cope with the rise in private
consumption and the subsequent increase in deliver-
ies of goods as well as the emerging rethinking of the
entire supply chain, additional logistics space is likely
to be increasingly required nationwide in the coming
years.
In 2019, the German market for warehouse and
logistics space achieved a turnover of approx. 6.9 mil-
lion square meters, a drop of only approx. 7 % on the
previous all-time record year 2018.20 By contrast, the
overall result for the first three quarters of 2020 was
5.02 million square meters, only 5.0 % down from the
previous year. For 2020, the sub-market for warehouse
and logistics space is expected to achieve a result of at
least 6.0 million square meters and thus once again
an end-of-year result above the ten-year average.21
However, one of the most important trends for the
company in the future continues to be the steady
demand on the investment market for German
commercial real estate, which reached a historic high
of around 70.8 € billion last year.22 Despite the effects
of the corona pandemic, the investment volume in
the current year 2020 only declined moderately.23 In
the first three quarters of 2020, a new all-time high
was recorded in the submarket segment of industrial
and logistics real estate with a transaction volume of
approx. 5.0 € billion.24 From the company's point of
view, the existing demand will continue and possibly
increase further due to the continuation of the
17 „https://www.bevh.org/presse/pressemitteilungen/details/vielbesteller-treiben-e-commerce-umsatz-in-2019-auf-neuen-hoechststand.html#:~:text=Im%20vierten%20Quartal%202019%20hat,erreichte%20mit%2022%2C3%20Mrd.>. (10/27/20)
18 „E-Commerce growth of 9.2% in the first half of 2020 – Permanently more E-Commerce for “Daily Needs”” available on 27 October 2020, available athttps://www.bevh.org/presse/pressemitteilungen/details/e-commerce-plus-von-92-prozent-im-1-halbjahr-2020-dauerhaft-mehr-e-commerce-beim-taeglichen-beda.html, published by the Federal Association for E-Commerce and Mail Order Sales in Germany
19 „KEP Study 2020“ published in June 2020 by the Federal Association of Parcel and Express Logistics, p.23
20 ”Property Report 2020 – Logistics Market in Germany” available on 27 October 2020, available at https://www.realestate.bnpparibas.de/marktberichte/logistikmarkt/deutschland-property-report, published by BNP Paribus Real Estate Holding GmbH
21 BNP Paribas Real Estate Holding GmbH. „At a Glance Q3 2020 - Logistics Market in Germany“ available on 27 October 2020, available at https://www.realestate.bnpparibas.de/marktberichte/logistikmarkt/deutschland-at-a-glance, published by BNP Paribus Real Estate Holding GmbH
22 „German Investment Market“ published in January 2020 by Savills Property Consulting GmbH, p.1
23 „Investment Q1 3 | 2020 | Germany“ published in 2020 by Colliers German International GmbH, p.1
24 „Logistics Investment Q3 | 2020 | Deutschland“ published 2020 by Colliers German International GmbH, p.1
25 „Investment Q1-3 | 2020 | Deutschland“, published in 2020 by Colliers International Deutschland GmbH, p.1
historically low interest rate level, the high demand
for commercial real estate by international investors
and the continued stable economic situation in
Germany.
The market share of industrial and logistics real estate
sales in the first three quarters of 2020 was also
slightly higher than in the previous year, at approx.
12 % of the total commercial real estate investment
market.25 The currently still high price level coupled
with the economic impact of the pandemic could
ultimately lead to a situation in which in 2020 real
estate owners will have to increasingly consider
selling their properties.
2.3 Business performance
Development of the real estate portfolioThe real estate portfolio continued to grow in the
2019/2020 financial year due to acquisitions. On
1 October 2019, the portfolio comprised 49 properties
with a rentable commercial area of approx. 0.91 milli-
on m² and an annualised net cold rent of 33.1 €
million. There was a transfer of ownership of 20
acquired properties. The property portfolio as of
30 September 2020 thus comprises 69 properties with
a rentable commercial area of approx. 1.2 million m²
and annualised net cold rent of 44.5 € million.
For the period under review the occupancy rate is
85.1 % (30 September 2019: 88.9 %) and the WALT
of the portfolio is 5.0 years (30 September 2019:
4.9 years).
Deutsche Industrie REIT-AG Economic report
63
Increase in value of the real estate portfolioThe annual property valuation of the portfolio was
carried out by an external expert on 30 June 2020.
Taking incidental acquisition costs and subsequent
construction costs (capex) into account, the valuation
result was 37.0 € million.
Accordingly, the portfolio shown in the balance
sheet now has a value of 585.8 € million (including
IFRS adjustments for ground leases in the amount of
20.8 € million, of which 19.4 € million is attributable
to Oberding). The value enhancement is mainly due
to further increases in market prices, particularly in
the logistics sector, as well as stable and further
increasing market rents and operational impro-
vements in the portfolio.
The property valuation was again carried out by
CBRE GmbH, Berlin, this financial year.
Successful capital increasesIn November 2019, the company implemented a
capital increase. A total of approx. 5.7 million shares
were placed at a price of 16.25 € per share, generating
gross proceeds of approx. 92.8 € million. In addition
to existing shareholders, half of the new shareholders
participated in this capital measure. After deducting
the costs of raising equity capital of 1.3 € million,
net proceeds of 91.5 € million remained.
In June 2020, the company successfully carried out a
capital increase from the authorised capital 2020/I.
A total of approx. 2.9 million new bearer shares were
placed in a private placement by way of an accelera-
ted book building procedure at a price of 20.00 € per
new share. The company's share capital thus increa-
sed from 29,163,187.00 € to 32,079,505.00 €. The
statutory subscription rights of the company's
shareholders were excluded.
The company received gross issue proceeds of 58.3 €
million from the capital increase. Until these funds
were used to finance acquisitions, liquid funds were
invested as part of short-term financial planning.
Financing activities In the past financial year 2019/2020, Deutsche
Industrie concluded a total of eleven loan agreements
with various savings banks and cooperative banks in
the amount of 63.2 € million, which were also paid
out in this financial year. The loans were secured, as
is customary in the market, by first-ranking land
charges and the assignment of rent and lease pay-
ment claims.
LenderInitial
interest rate
Loan nominal (TEUR)
Contractual term (years)
Contractual fixed interest
rate (years)Refinanced properties
Kreissparkasse Ostalb 1.47 %* 9,000 6 6 Essingen
Kreissparkasse Ostalb 1.75 %* 4,000 9 9 Aalen
Kreissparkasse Ostalb 1.75 %* 4,500 9 9 Westhausen
Sparkasse UnnaKamen 1.55 % 3,900 17.5 10 Dortmund und Unna
Sparkasse Düren 1.45 % 8,000 17.5 10 Düren
Berliner Sparkasse 1.46 % 4,000 10 10 Altlandsberg
Berliner Volksbank 1.10 % 4,100 18 10 Bocholt
Berliner Volksbank 1.10 % 6,400 18 10 Hannover
Kreissparkasse St. Wendel 1.50 % 9,240 14.8 10 Remscheid und Freisen
Sparkasse Hildesheim Goslar Peine 0.97 %* 8,670 10 10 Barleben, Osterwieck Oebisfelde, Stegelitz
Landessparkasse zu Oldenburg 1.20 % 1,410 10 10 Hude
Total 1.27 % 63,220 12.7 9
*synthetic fixed interest rate (SWAP)
Deutsche Industrie REIT-AG Annual report 2019/2020
64
In addition, two loans with a volume of TEUR 4,400
were paid out in the 2019/2020 financial year, which
were already concluded in the 2018/2019 financial
year but are to be balanced in 2019/2020.
In addition, DIR has taken out an unsecured borro-
wer's note loan in the amount of TEUR 10,000.0. The
loan has a term of five years with an interest rate to
be determined biannually, initially 2.25 % p. a.
Annual General MeetingThe company's Annual General Meeting was held in
Berlin on 6 March 2020.
By resolution of the Annual General Meeting, the
Supervisory Board was expanded from three to five
members. Ms. Cathy Bell-Walker and Ms. Antje
Lubitz became new members and the previous
members Hans-Ulrich Sutter, Dr Dirk Markus and
Achim Betz were re-elected to the Board. In addition,
the Articles of Association were amended so that
several Vice Chairmen of the Supervisory Board can
also be appointed.
At the constituent meeting of the Supervisory Board,
which took place after the Annual General Meeting,
Mr. Hans-Ulrich Sutter was re-elected Chairman of
the Supervisory Board. Dr Dirk Markus was elected
First Vice Chairman and Achim Betz Second Vice
Chairman.
The Annual General Meeting approved the payment
of a dividend of 0.16 € per share for the 2018/2019
financial year, which was paid out to shareholders
on 11 March.
Furthermore, the actions of the Management Board
and Supervisory Board were approved for their term
of office in the 2018/19 financial year. DOMUS AG
Wirtschaftsprüfungsgesellschaft/Steuerberatungsge-
sellschaft, Berlin, were again elected as auditors for
the 2019/20 financial year. Furthermore, various
minor amendments to the Articles of Association
were approved.
In addition, new Authorised Capital 2020/I was
created amounting to 14,581,593.00 € in total, which
can be utilised until 5 March 2025, and a resolution
was passed to renew the authorisation to issue option
and/or convertible bonds with a total nominal value
of up to 150,000,000.00 € and to increase Contingent
Capital I up to 14,581,593.00 € with the option to
exclude subscription rights.
More than 58% of the share capital was represented
(share capital of the company at the time of the
convening of the Annual General Meeting:
29,163,187.00 €). All items on the agenda were
passed with the required majority.
Influence of the Corona pandemic on business performanceThe impact of the corona pandemic on DIR's bus-
iness has so far been minimal. There have only
been deferrals of EUR 1.8 million in rents, of which
EUR 0.65 million had already been paid by 30 Sep-
tember 2020. Part of the deferrals, which have not
yet been settled, was considered in the annual result
under administrative expenses in the form of indivi-
dual impairments.
No significant impact on the letting situation, the
acquisition pipeline or other areas of property
management is currently discernible.
Deutsche Industrie REIT-AG Economic report
65
2.4 Financial position, liquidity, and financial performance
Financial positionTotal assets increased by TEUR 276,859.6 to TEUR
715,848.7 (previous year: TEUR 438,989.1). This
resulted from growth through acquisitions, the
revaluation of the property portfolio and the two
capital increases. Investment property was carried at
TEUR 585,819.7 as of 30 September 2020 (30 Septem-
ber 2019: TEUR 392,849.0). Other financial assets
were carried at TEUR 22,949.2 (30 September 2019:
TEUR 0.0). This relates to the share of financial assets
with maturities of more than one year. There were
also other non-current assets in the amount of TEUR
7,474.1 (previous year: TEUR 38,886.2), which
represent advance payments for the acquisition of
investment property.
Current assets increased to TEUR 98,073.5 (previous
year: TEUR 5,765.2). This is primarily due to the
higher level of other current assets amounting to
TEUR 94,618.3 (30 September 2019: 2,883.7) because
of financial investments with a term of up to one year.
The company's equity increased by TEUR 195,736.8
to TEUR 377,200.0 (30 September 2019: TEUR
181,463.2), which is due to the two capital increases
amounting to TEUR 149,090.9 and the positive
annual result of TEUR 50,820.5 (30 September 2019:
TEUR 48,671.9), taking into account the dividend
payment of TEUR –4,666.1 (30 September 2019: TEUR
–2,025.0).
• The EPRA NAV per share on 30 September 2020 is as follows:
30/09/2020 30/09/2019
Equity (TEUR) 377,200.0 181,463.2
NAV 377,200.0 181,463.2
Fair Value of financial derivates –491.4 0.0
EPRA NAV 376,708.6 181,463.2
Number of shares at the balance sheet date 32,079,505 23,451,945
EPRA NAV (€ per share) undiluted 11.74 7.74
A dilution from the convertible bond was not to be
considered here, as no convertible bonds have been
converted to date.
Non-current liabilities increased by TEUR 94,788.2 to
TEUR 322,932.8 (previous year: TEUR 228,144.6).
This was due to the increase in liabilities to banks to
TEUR 134,664.2 (previous year: TEUR 67,526.5)
because of new bank loans. Liabilities from convertib-
le bonds increased to TEUR 49,088.0 (previous year:
TEUR 41,184.0), which is solely due to the valuation
on the reporting date. Other non-current liabilities
increased by TEUR 19,585.3 due to the increase in
liabilities from ground rents resulting from the
acquisition of the property in Oberding.
Deutsche Industrie REIT-AG Annual report 2019/2020
66
Current liabilities fell by TEUR 13,665.4 to TEUR
15,715.9 (previous year: TEUR 29,381.3). While
current liabilities to banks (interest) increased due to
the higher loan portfolio and other current liabilities,
liabilities to other lenders amounted to TEUR 0.0 as
of 30 September 2020 (previous year: TEUR 20,177.7).
• The development of financial liabilities and the Net Loan-to-value ratio (net LTV) is as follows:
TEUR 30/09/2020 30/09/2019
Non-current financial liabilities
Liabilities to banks 134,664.2 67,526.5
Liabilities from corporate bonds 118,065.2 117,904.0
Liabilities from convertible bonds 49,088.0 41,184.0
Other non-current liabilities 21,112.4 1,527.1
Current financial liabilities
Liabilities to banks 7,820.7 3,956.9
Liabilities to other creditors 0.0 20,177.7
Other non-current financial assets –22,949.2 0.0
Current financial assets
Cash and cash equivalents –35.1 –2,065.6
Trust accounts 212.5 –459.0
Short-term loans –87,928.5 0.0
Net debt 220,050.2 249,751.6
Investment properties 585,819.7 392,849.0
Advance payments on investment property 7,474.1 38,886.2
Non-current assets held for sale 0.0 435.0
Total Investment properties 593,293.8 432,170.2
Net LTV 37.1 % 57.8 %
In the LTV calculation, leasehold rights were included
in the items investment property in the amount of
TEUR 20,832.7 (previous year: TEUR 1,472.0) and
other non-current liabilities in the amount of TEUR
21,050.1 (previous year: TEUR 1,516.7). Without this
consideration, the LTV would have been 34.8 %
(previous year: 57.6 %).
Deutsche Industrie REIT-AG Economic report
67
Liquidity
• The cash flow statement is as follows:
TEUR 2019/2020 2018/2019
Cash flow from operating activities 17,661.9 17,133.0
Cash flow from investing activities –225,398.3 –198,002.9
Cash flow from financing activities 205,705.9 182,818.4
Change in cash and cash equivalents –2,030.5 1,948.5
Cash and cash equivalents at the beginning of the period 2,065.6 117.1
Cash and cash equivalents at the end of the period 35.1 2,065.6
Cash flow from operating activities increased to TEUR
17,661.9 (previous year: TEUR 17,133.0). Overall,
cash flow from operating activities would have been
expected to increase in line with higher rental
income. However, this was offset in the current year
by a cash deposit of TEUR 8,354.0 for contractually
owed bank guarantees from the ground lease cont-
racts in Oberding.
The cash flow from investment activities in the year
under review was TEUR –225,398.3 (previous year:
TEUR –198,002.9) and includes mainly payments for
properties purchased and payments for short-term
financial investments.
The various financing measures carried out had an
overall impact on cash flow from financing activities
in the amount of TEUR 205,705.9 (previous year:
TEUR 182,818.4). These were the cash inflows from
the two capital increases and several loans taken out.
These were offset by payments for debt service and
dividends.
The company was always able to meet its payment
obligations.
Financial performance
• The financial performance of Deutsche Industrie developed as follows in the financial year under review:
TEUR 2019/2020 2018/2019
Net rental income 31,285.7 20,950.4
Net proceeds from the sale of investment properties 0.0 57.0
Other income 175.6 373.7
Result from the revaluation of investment properties 36,981.7 37,552.1
Administrative expenses –6,154.3 –2,725.3
EBIT 62,288.7 56,207.9
Finance result –11,468.0 –7,558.1
EBT 50,820.7 48,649.8
Other tax -0.2 22.1
Net income 50,820.5 48,671.9
Deutsche Industrie REIT-AG Annual report 2019/2020
68
Rental income increased primarily due to growth
from acquired properties. Accordingly, management
expenses also rose. Net rental income rose to
approximately TEUR 31,285.7 (previous year:
TEUR 20,950.4).
Other operating income of TEUR 175.6 (previous
year: TEUR 373.7) is primarily due to insurance
refunds.
The net income for the period was significantly
influenced by the regular valuation of the property
portfolio and the resulting positive valuation result of
TEUR 36,981.7 (previous year: TEUR 37,552.1). The
revaluation resulted from the increase in market
values in the Logistics division, which was caused by
the increased international demand for this segment.
However, operating improvements (new lettings,
reduction of vacancies and rent adjustments) and
higher market rents also contributed to the value
development.
The higher administrative expenses TEUR –6,154.3
(previous year: TEUR –2,725.3) are primarily the
result of increased depreciation and impairment
losses on rent receivables due to the larger portfolio
as well as general bad debt allowances on creditshelf
loans.
• The cost ratio for general administrative expenses is as follows:
TEUR 2019/2020 2018/2019
Personnel expenses –854.2 –808.3
Other administrative expenses –2,578.2 –1,592.9
One-off effects 619.9 431.2
Adjusted administrative expenses –2,812.5 –1,970.0
Gross Rental income 40,781.3 25,481.2
Recurring costs ratio 6.9 % 7.7 %
The financial result of TEUR –11,468.0 (previous year:
TEUR –7,558.1) resulted from the increase in financial
liabilities (loans), which correspond to the larger
property portfolio, as well as significantly higher
interest income and a valuation effect from the fair
value measurement of the convertible bond and
higher ground rents.
There are no income taxes due to the tax exemption
for REIT companies.
Deutsche Industrie REIT-AG Economic report
69
• The net income for the year amounts to TEUR 50,820.5 (previous year TEUR 48,671.9), from which FFO (funds from operations) and aFFO (adjusted funds from operations) are derived as follows:
TEUR 2019/2020 2018/2019
Net income 50,820.5 48,671.9
Adjustment amortisation and depreciation 157.8 115.5
Adjustment revaluation of investment properties –36,981.7 –37,552.1
Adjustment sales result of investment properties 0.0 -57.0
Adjustment revaluation result financial liabilities 7,904.0 832.0
Adjustment for special effects / non-cash expenses + income 2,125.0 446.1
Adjustment for one-off expenses/income 619.9 431.2
FFO 24,645.5 12,887.6
– Capex –4,943.6 –3,273.4
aFFO 19,701.9 9,614.2
Non-cash expenses and income primarily include
valuation adjustments from convertible bond interest
and interest on the property bond. Non-recurring
expenses/income primarily include expenses for land
charges and expenses relating to other periods.
The investment costs (capex) comprise value-enhan-
cing construction measures in several properties, of
which TEUR 1,204.5 in the Dortmund Hannöversche
Str. property (construction of a new warehouse) and
TEUR 880.6 in the TCN Schortens property, including
the construction of new company flats.
Overall statement by the Management Board on the economic situation and business performanceFollowing an already very successful financial year
2018/2019, the 2019/2020 financial year was also
positive, despite the effects of the corona crisis. Once
again, the real estate portfolio was significantly
expanded through further acquisitions, which also
led to a corresponding increase in rental income.
In addition, the valuation gain from the property
valuation again demonstrated the great potential for
value enhancement of the portfolio. In terms of
financing, loans were taken out at more favourable
conditions and two capital measures were success-
fully implemented.
An FFO of TEUR 24,645.5 was generated during
the 2019/2020 financial year, in-keeping with the
projection of TEUR 23,000.0 to TEUR 25,000.0.
The effects of the acquisitions will be reflected
throughout the year from the new 2019/2020
financial year onwards. The management of DIR
therefore believes that the company is ideally
positioned for further successful and profitable
development.
Deutsche Industrie REIT-AG Annual report 2019/2020
70
3. Opportunities and Risk Report and Forecast Report
3.1 Opportunities and Risk Report
Risk management system of DIRRisk management is designed to identify the value
creation potential of the company’s business activities
and to enable them to be exploited in a manner that
results in a sustainable increase in the value of the
company. An integral part of this system is a structu-
red, early examination of potentially unfavourable
developments and events (risks), which enables the
Management Board to take countermeasures in good
time before significant damage occurs.
The DIR risk management system comprises the
regular systematic identification, analysis, evaluation,
monitoring and control of significant risks by the com-
pany's Board of Management. In view of the clearly
defined corporate structures and business processes,
the degree of formalisation of the risk management
system is low, but effective and appropriate. The close
involvement of the Board of Management in major
business operations and projects ensures ongoing
monitoring of risks as they arise.
The risk management system used includes the
following essential elements:
• a controlling and reporting system that can
identify undesirable business developments at an
early stage and communicate them to corporate
governance
• a regular or event-related risk inventory
• the documentation of relevant risks for regular or
event-related information of corporate governance
• a periodic, regular evaluation of the identified
risks and the decision on possible countermeasu-
res or the deliberate acceptance of manageable
risks by the Management Board
• an internal control system (ICS), with elements
such as the dual control principle and segregation
of functions, designed to ensure accurate and
complete financial reporting, ensuring a secure
invoice receipt and disbursement process.
In detail, the essential elements of the risk manage-
ment system are reflected in the following risk
management process:
a. Defining the requirements: The Management Board
defines the methodological and substantive
requirements for the risk management system,
whereby the expectations of the company are
determined, and the risk awareness is strengthened.
b. Risk identification and analysis: All business risks
are fully captured, analysed for their causes and
effects, assessed, and divided into five risk catego-
ries. In addition, possible countermeasures are
identified.
Deutsche Industrie REIT-AG Opportunities and Risk Report and Forecast Report
71
c. Reporting: The Management Board is informed
regularly and at an early stage about all existing
risks and possible countermeasures. As part of the
reporting cycles, reporting is done on an ad hoc,
weekly, monthly, or quarterly basis, depending on
the circumstances and the risk assessment.
d. Risk management: Based on the decisions on
control measures taken by the Board of Manage-
ment, the identified, analysed and assessed risks
are actively responded to during this stage.
e. Risk controlling: Risk controlling is the methodi-
cal and content-related planning, monitoring and
control of the risk management system by a
qualified risk manager. Risk controlling encompas-
ses all phases of the risk management process and
must be regularly adjusted by the Management
Board in terms of methodology and content.
• The risks are assessed based on defined thresholds regarding the amount of damage and the probability of occurrence:
EUR million
Exte
nt o
f dam
age
High > 8.0 Medium Medium-high High
Medium 4.0 up to 8.0 Medium-low Medium Medium-high
Low < 4.0 Low Medium-low Medium
< 10 % 10 % up to 50 % > 50 %
Low Medium High
Probability of occurrence
Deutsche Industrie REIT-AG Annual report 2019/2020
72
DIR is exposed to the following risk categories or
individual risks which, individually or collectively,
may have a negative impact on the net assets,
financial position and results of operations and the
further economic development of the company:
General, strategic, and market-specific risksa. Political, legal, and social risks
Since the business activities of DIR are regulated
by legal frameworks for real estate, this could be
affected by changes in national and/or European
law standards as well as by a changed interpretati-
on or application of existing legal norms. These
include, inter alia, tenancy law, public constructi-
on law and tax law. Furthermore, political changes
can also lead to changes in the legal framework
and thus have an indirect impact on DIR.
Politically, Germany has dealt comparatively well
with the onset of recession. Measures such as
the short-time working allowance and the rent
moratorium, which were quickly adopted and
implemented, show the efficiency with which the
German government, unlike many other Europe-
an countries, actively steered against a severe
economic downturn. Even if this is associated
with short-term losses, it has been positively
received by investors.
Although the German real estate submarkets are
not as liquid as in other European countries, they
are recovering unmistakably quickly from the
critical economic effects, as was evident shortly
after the lifting of the lockdown and shutdown.
This means that the German Federal Republic
remains one of the most attractive investment
locations for global investors and capital due to
its resilience and market stability.
b. Economic risks
So far, DIR has achieved its sales exclusively in
Germany. A deterioration in national economic
conditions, coupled with an increase in the number
of unemployed, may negatively impact rent and
price levels and adversely affect the creditworthi-
ness of potential tenants and purchasers of real
estate. This can have different regional effects, so
that DIR can be affected here. Furthermore, the
national economic situation may also depend
considerably on international developments.
The global economy, and with it the German
economy, has entered into recession, intensified
by the SARS-CoV-2 pandemic. German economic
output in 2020 will be significantly lower on
average than in previous years. Both the Federal
Ministry of Economics and Energy and the ifo-
Institute expect the recovery to continue soon.
Management keeps itself constantly informed
about the current macroeconomic situation and
has the necessary expertise to identify changes
in the macroeconomic environment, take any
necessary measures and thus safeguard the
company's earnings position.
c. Industry risks in the Light Industrial sector
The real estate sector is characterised by intense
competition between the numerous providers. In
this respect, there is a risk that competition will
lead to increased price pressure and lower mar-
gins. This can also have a negative impact in
various DIR locations if rental contracts are not
renewed or rents are reduced.
Despite the state of emergency in 2020 in many
areas of public life and in the economy, the
current recession has not yet left a profound mark
on the Light Industrial market. However, based on
the current statistical data on the market for
corporate real estate, the Management Board
assumes that a not insignificant proportion of
market activity was due to previously planned or
already initiated planning. This means that the
effects of the SARS-CoV-2 pandemic and the
measures taken during it, may be reflected in the
statistical market data or the Light Industrial
sector in the future due to a time lag.
Deutsche Industrie REIT-AG Opportunities and Risk Report and Forecast Report
73
Due to Germany's geographically advantageous
location and the expected increase in turnover in
the logistics sector, the risk of significantly falling
rents and the failure to extend rental agreements
is considered manageable.
d. Changes in the financing environment/capital
market
Of importance for the national demand for real
estate is the development of interest rate levels in
Germany. An increase in interest rates would
make real estate investments more difficult due to
growing interest charges. In addition, in this case,
the borrowing costs of the loans taken out by the
real estate companies would increase the cost of
earnings.
The Board of Management considers the risk of
interest rate increases to be low at present and for
the new financial year. The main reason for this is
the further intensification of monetary and fiscal
policy by the ECB and the states in the wake of
the SARS-CoV- 2 pandemic.
Company specific risksa. Risks due to the use of IT
DIR uses all current and modern IT applications
and is supported here by an external systems
provider. In this context, there is a fundamental
risk of total outages both at DIR and the service
provider, which could lead to significant dis-
ruptions in the business. Furthermore, there is a
risk of attacks on the systems of DIR and thus
access of unauthorised persons to the data of DIR.
In order to counteract this, the service provider
regularly carries out all necessary operational,
administration and maintenance work, and
assumes the contractual liability for this. All
employees are also required to behave properly in
the use of IT. The company has a clearly demarca-
ted IT infrastructure from that of other affiliated
companies. The DIR has IT roles and IT access and
authorisation concepts.
Furthermore, with the decree on the mandatory
application of the new General Data Protection
Regulation (GDPR), companies were given the
responsibility to protect user data. In concomitant
with this, DIR must protect stored data against
misuse or, in the case of misuse, to send an
immediate notification to the persons concerned.
In the case of infringements, fines may amount to
up to 4 % of the annual turnover. DIR has instal-
led an external professional data protection officer
in good time for this purpose, who monitors these
processes and is available for clarifying any areas
of uncertainty. In addition, the data protection
officer or data protection service provider imple-
ments and adheres to all measures necessary to
comply with the DSGVO. The company does not
believe that it is exposed to significantly higher IT
risks than other companies in the industry.
b. Human Resources risks
Due to DIR’s lean personnel and administrative
structure, there is a risk that qualified and
high-performing employees and knowledge
carriers leave the company and cannot be replaced
within a reasonable time.
The company is pushing ahead with the esta-
blishment and expansion of management and
personnel capacities with expertise to further mini-
mise the personnel risk. In the past fiscal year
2019/2020, DIR hired two new employees, thereby
expanding its capacities. The structure of the orga-
nisation and staffing levels will continue to be
adapted to the growth of the company.
c. Financing risks
As part of its business, DIR is exposed to finan-
cing, liquidity, and interest rate risks.
Financing risks exist in so far as borrowing can
either not take place or can only be carried out
under unfavourable terms as a result of changes in
company or market-related developments, which
could have a negative impact on further acquisiti-
Deutsche Industrie REIT-AG Annual report 2019/2020
74
on financing and the earnings situation of DIR.
Should this result in problems in servicing current
loans, lenders could force-sell real estate collateral,
and such distress sales could result in significant
financial penalties for DIR.
To counter this risk, DIR works together with
various credit institutions and closely monitors
developments on the financing market. In doing
so, it also makes use of short-term financing
options to secure attractive long-term financing
options through upcoming or planned lease
extensions.
There are also various risks regarding corporate
liquidity. These can arise on the one hand because
of possible rent losses. In addition, negative
liquidity effects may arise in individual cases if
leases cannot be extended and vacancy rates arise
as a result. In addition, a breach of agreed ratios in
loan agreements (covenants) may lead to a special
termination of the lending bank and cause an
unscheduled outflow of liquidity from the loan
repayment.
To avoid rent losses, the creditworthiness of the
potential tenant is regularly checked in conjuncti-
on with the conclusion of rental agreements.
Furthermore, liquidity risks are counteracted by
extensive liquidity planning instruments, which
reflect current business transactions with the
planning data both in the short and in the
medium term. There is regular liquidity reporting
and a liquidity forecast to the Management Board.
In addition, as part of a bank reporting, a likely
covenant breach is recognised as early as possible
and prevented by suitable measures.
Interest risks exist regarding the liabilities due for
rollover or refinancing as well as planned loans for
the financing of real estate portfolios. To hedge
against adverse effects of changes in interest rates,
DIR uses fixed interest rates for financing depen-
ding on the market situation and the assessment
of market prospects. The direct impact of changes
in the general interest rate level on the company’s
performance in terms of changes in cash flows is
relatively small compared to the potential indirect
effects of changes in the general interest rate level
on real estate demand. DIR's management follows
developments on the capital markets and finan-
cing conditions are constantly monitored. Where
necessary, measures are taken to optimise risk.
In addition, default risks also exist with regard to
the interest-bearing cash and cash equivalents
invested as part of the short-term liquidity
management if the borrowers do not pay the
principal for economic reasons. DIR counteracts
this risk by only making investments with the
best possible credit rating and by continuing to
monitor existing investments on an ongoing basis
to counteract any risks that may arise.
d. Legal and litigation risks
Through its business activities, DIR is exposed to
the risk of legal disputes and (potential) warranty
claims and claims for damages without being able
to assert claims against third parties.
There are currently no other legal risks, from legal
disputes, which could have a significant impact
on the economic position of the company.
e. Tax risks
To maintain the REIT status, DIR must comply
with the provisions of the REIT Act. Thus, the
investment object, the investment volume as well
as the business activity are restricted or influenced
by the following regulations:
• Exclusion of the acquisition of domestic
existing residential real estate
• Exclusion of the acquisition of shares in real
estate corporations
• Exclusion of real estate trading
• Limitation of reserve formation
Deutsche Industrie REIT-AG Opportunities and Risk Report and Forecast Report
75
• Only minimal liquidity formation due to the
minimum distribution of 90 % of the annual
net income according to commercial law
• Limitation of ancillary activities close to the
property for third parties
• Minimum equity of 45 % of immovable
property
If the statutory requirements are not met, DIR
risks losing the tax exemption. This can lead to
certain after-taxation obligations.
Due to the restrictions of the REIT Act, certain
chances or opportunities in the real estate and
financing market cannot be exercised or only to
a limited extent in individual cases.
Furthermore, the company may be threatened
with (criminal) payments for non-compliance
with the provisions of the REIT Act. In addition,
the company is threatened with compensation
claims by shareholders in the event of a loss of the
REIT status due to at least a 15 % free float and/or
a maximum participation rate of 10 %. sharehol-
ders who own less than 3 % of the voting rights
are eligible. The lack of practice in the application
of the REIT Act by the competent supervisory and
tax authorities could, in disputed individual cases,
lead to a disadvantageous interpretation of the
application of the law or force the company to
adapt to the new legal situation.
Most of the REIT criteria under tax law can be
achieved without difficulty due to the DIR
business model. Compliance is ensured on an
ongoing basis through permanent monitoring of
the criteria and a stringent financing policy. The
growth of DIR means that equity capital increases
are carried out with less risk and less borrowing is
required. Moreover, an infringement must have
been committed in three consecutive financial
years to lose the tax exemption. This legal require-
ment gives the company sufficient reaction time
or room for reaction to take necessary counter-
measures.
f. Pandemic risks
The outbreak and spread of a pandemic can lead to
restrictions on the company's business activities.
The coronavirus (COVID-19 (Coronavirus SARS-
CoV-2)), which first broke out in China at the end
of 2019, developed into a global pandemic over
the course of 2020. By the time of the risk report
(Q4 2020), Germany had already gone through
a nationwide lockdown and shutdown and has
been in a partial lockdown again since November
2020. Furthermore, it cannot be ruled out that
government measures to combat the pandemic
may be extended or tightened.
Individual deferral agreements have been conclu-
ded with tenants whose business activities have
been or are still being closed or partially restricted
due to government regulations during the pande-
mic or due to the SARS-CoV-2 pandemic. These
deferral agreements/receivables are monitored on
an ongoing basis through active asset manage-
ment and receivables controlling.
Property-specific risksa. Investment risk of the individual property
The economic success and further growth of the
company is decisively dependent on the selection
and acquisition of suitable real estate. This
involves the risk of incorrectly assessing or not
recognising the structural, legal, economic, and
other burdens on the objects to be purchased. In
addition, the assumptions made in relation to the
earnings potential of the real estate may subse-
quently prove to be partially or fully inaccurate.
In particular, misconceptions about the attractive-
ness of the property location and other factors
which may influence the tenants or buyer’s
perspective could mean that the management of
the property in question does not lead to the
expected results.
These property-specific risks are counteracted by
an in-depth review of the properties concerned. In
the context of the object assessment, among other
things, the anticipated redevelopment, main-
tenance, and modernisation needs are deter-
Deutsche Industrie REIT-AG Annual report 2019/2020
76
mined, and the earnings value and the basic debt
servicing capacity are examined according to
bank-conforming standards. The rental income
risk, the rental situation and the need for refurbis-
hment, maintenance, and modernisation of the
properties in the portfolio are assessed in regular
fixed meetings and as part of internal reporting.
b. Inventory and valuation risks
The company holds real estate holdings to achieve
the most stable cash flows possible from the
management of these holdings over a longer
period. While the real estate is in the company’s
portfolio, it may manifest a variety of inventory
and valuation risks that could cause the company
to lose value. For example, the social structures of
a location may deteriorate after the acquisition of
real estate by DIR and, as a result, adversely affect
letting activities and the achievable rental income.
In addition, the property portfolio held by the
company may experience excessive wear and tear
requiring maintenance and revitalisation measu-
res earlier or to a greater extent than originally
planned. In addition, it may also turn out that the
structures have an initially unexpected recovery
requirement, which leads to additional costs for
the company, without initially receiving corres-
ponding additional income.
In connection with these risks, but also due to
other factors such as unexpected competitors in
the immediate vicinity of the site, vacancies may
increase and result in lower rental income com-
bined with higher leasing expenses. In addition
to adverse effects on the company’s ongoing
operating income and expenses, these risks may
adversely affect the valuation of the property
held by DIR and therefore the company’s results.
The further growth of the real estate portfolio and
the resulting better location and tenant diversifi-
cation will reduce these individual risks from the
overall portfolio perspective. The real estate inven-
tory and valuation risks for the respective loca-
tions are counteracted with the measures descri-
bed under a).
In addition, as with all assets, there is the funda-
mental risk of destruction of individual objects
due to force majeure or natural hazards. These
risks are countered by adequate insurance cover
with well-known and high-performance insurance
companies. The insurance values of DIR's portfo-
lio properties are valued annually, and the
insurance policies and scope of insurance are
adjusted, as necessary.
c. Letting risk
There is a risk that changes in supply and demand
on the letting market and deterioration in the
competitiveness of individual properties in their
respective local market conditions could have
a direct negative impact on the rental income
generated by DIR and the development of vacan-
cies in the Company’s real estate portfolio. In
addition, this can incur additional costs that
cannot be allocated to the tenants.
These risks are countered by active asset and
property management, which firstly includes
a permanent analysis of the letting market and
tenant needs. Furthermore, this includes professi-
onal letting management as well as ongoing
maintenance, refurbishment, and modernisation
measures, which ensure the attractiveness and
thus the competitiveness of the locations. The
letting risk and the letting situation in the
portfolio are discussed in regular asset manage-
ment and capex jours fixes. If maintenance,
refurbishment, or modernisation measures are
necessary for the prevailing letting situation,
these are carried out professionally in accordance
with the principle of cost/earnings ratio.
d. Construction risk
If structural measures are required on the proper-
ties, there is a risk that the construction costs
considerably exceed the target values. This risk is
countered by a detailed planning of the construc-
tion costs and their tight monitoring.
Uncertainties may also contribute to the construc-
tion risks regarding whether, when and under
which conditions and/or secondary conditions
Deutsche Industrie REIT-AG Opportunities and Risk Report and Forecast Report
77
the building permits for the projects are granted.
For example, the company sometimes relies on
the discretion of individual authorities, and even
disputes with residents and tenants can signifi-
cantly delay or adversely affect the granting of
permits. Any of these circumstances can lead to
planned building work not being able to be
carried out at the assumed costs, not within the
planned timeframe, or not at all. These risk factors
are already being thoroughly examined in
advance of individual construction measures.
Building projects or project developments are not
crucial to the economic success of DIR, so the risk
is limited. There are currently no properties under
project development. The focus of DIR's core
business is not on project development of real
estate. Should project developments or constructi-
on projects be necessary during a property life
cycle, the company will take appropriate measures.
e. Environmental risk
If contaminated sites and other building, soil and
environmental damage are identified, the compa-
ny could be obliged to take extensive and costly
measures to eliminate them. As part of the
purchase audit, the company carries out a syste-
matic review of environmental aspects. To hedge
against the risk, guarantees are obtained from the
sellers and due diligence checks are carried out
during the purchase process. In the process,
environmental law risks, the existing environmen-
tal quality, environmental law issues and contami-
nated sites are analysed and evaluated. Where
they exist, these are evaluated in the context of
the company's existing purchase criteria or
guidelines. The company also takes possible
environmental risks such as contaminated sites
into account with a sufficiently high safety
discount when determining the purchase price.
Internal controlling and risk management system regarding the accounting processThe accounting-related internal control system at DIR
was implemented with the aim of ensuring adequate
assurance with respect to full and accurate annual
financial statements by establishing appropriate
control mechanisms within the internal and external
accounting and reporting process.
At least once a quarter and in regular jours fixes, the
company receives object and portfolio information
from its commissioned service providers according
to its specifications, in which it is informed about
important, contract-relevant activities and, if applica-
ble, deviations from the planning. The evaluations
are analysed and checked for plausibility and exa-
mined for identifiable risks. Recognised risks are asses-
sed and included in the regular or ad hoc risk repor-
ting to the Supervisory Board.
The accounting-related risk management system of
DIR aims to reduce the risk of fundamental errors or
inappropriate presentation of the net assets, financial
position, and results of operations. For this purpose,
the underlying data is regularly reflected on analyti-
cally based on expected values. The service provider
commissioned for significant parts of the accounting
process of the company is kept informed closely and
continuously about the current business develop-
ment. The services include the fulfilment of the
accounting obligations in accordance with the
German Commercial Code as well as the assumption
of payment transactions, the preparation of profit
and loss accounts, account analyses, monthly sales
tax pre-notifications as well as business analyses and
the quarterly preparation of interim financial statem-
ents according to HGB and IFRS, as well as object and
portfolio information. The accounting process is
monitored by both service providers and the compa-
ny through an effective internal control system that
ensures the regularity of accounting and compliance
with legal requirements. In particular, the clear
allocation of responsibility and control in compliance
with the dual control principle and the principle of
separation of duties, appropriate access regulations in
the financial statement relevant EDP systems and
consideration of recognised and assessed risks must
be mentioned. For the determination of market
values of real estate, the company invites external
experts. DIR was convinced of the technical, qualita-
tive, and capacity-based suitability of the service
providers and employees involved in the accounting
process and the appraisal reports. In view of the still
Deutsche Industrie REIT-AG Annual report 2019/2020
78
small size of the company, DIR has so far refrained
from establishing an internal audit.
Other influencesIn addition to the risks mentioned, there are general
influences that are unpredictable and thus hardly
controllable. These include, for example, political
changes, social influences, and risk factors such as
natural disasters or terrorist attacks. Such influences
could have negative effects on the economic situation
and indirectly affect the further economic develop-
ment of DIR.
Assessment of the overall riskThe Board of Management considers the overall risk
situation to be manageable and has not changed in
leaps and bounds compared to previous years. With
regard to the individual risks mentioned above, we
currently assess competition risk and financing risks
from rising interest rates as well as risks from asset
management as medium risks, although no signifi-
cant new events and associated increases in risk
occurred in the reporting year.
In our estimation, there are currently no concrete
risks jeopardising the existence of the company.
Chances of future developmentDIR will further increase its cash flow from rentals
through the acquisition of further high-yielding
properties in the year under review. Furthermore,
the reduced financing costs due to the refinancing
of borrowed capital will contribute to increasing
profitability and funds from operations (FFO).
Furthermore, the Management Board expects that
DIR will increasingly be perceived as a reliable and
long-term oriented real estate partner, which will
result in better opportunities for extending lease
agreements as well as acquisition opportunities for
further properties. As a result of the increasing
presence at capital market conferences and in
investor media, the Management Board expects to see
broader demand for DIR shares in the future and thus
continued good access to sources of debt and equity.
PICTURE:Eschenbach, Gossenstraße
Deutsche Industrie REIT-AG Opportunities and Risk Report and Forecast Report
79
3.2 Forecast report
The following statements on the future business
development of DIR are based on the estimates of the
Management Board. The assumptions made are
currently regarded as realistic based on the informati-
on available. In principle, however, forward-looking
statements involve a risk that developments will not
actually occur either in their tendency or in their
extent.
Forecast for the 2020/2021 financial yearIn the 2020/2021 financial year, DIR will continue to
concentrate on efficient portfolio management and
above all on the further acquisition of Light Industrial
properties in accordance with the investment criteria.
Acquisitions will be financed to a moderate extent by
existing equity, borrowings in line with market
conditions and, if necessary, by capital measures.
The development of the FFO as a key performance
indicator for the company depends to a large extent
on the size of the acquisitions and the associated
increase in rental income. Based on planned acquisi-
tions the company expects the FFO to increase to
32.0 € million to 34.0 € million for the coming
financial year.
Due to the continued dynamic development of the
company, planned for the 2020/2021 financial year
and the continuing good growth prospects, there will
continue to be a need for additional liquidity. For the
coming financial year, the company assumes that
there will be further inflows of sufficient liquidity due
to the very good access to the banking, investor, and
capital markets.
If the changed conditions resulting from the Corona
pandemic continue to apply, management expects
effects in the real estate business in terms of revenues,
agreed rental contracts and net income, which cannot
be reliably quantified at present.
Deutsche Industrie REIT-AG Annual report 2019/2020
80
4. Remuneration report
Compensation system for the Supervisory BoardThe members of the Supervisory Board receive a fixed
cash remuneration of TEUR 5.0 for each full financial
year of their membership of the Supervisory Board
plus the premiums for an appropriate directors' and
officers' liability insurance policy (D&O insurance).
The Chairman of the Supervisory Board receives
double this basic remuneration, vice chairmen
receive one and a half times this basic remuneration.
No committees were formed, and no attendance fees
are paid. No variable remuneration based on the
success of the company or other criteria is granted.
The remuneration of the Supervisory Board for the
financial year amounted to TEUR 28.8 (previous year:
TEUR 22.5) plus expenses and VAT and is distributed
as follows:
Remuneration system for the Management BoardBasic remuneration system
The members of the Management Board of DIR
receive non-performance-related basic remuneration
in cash and performance-related variable remunerati-
on in cash, which is based on short-term (Short-Term
Incentive, STI) and long-term (Long-Term Incentive,
LTI) targets.
The Chairman of the Management Board, Rolf Elgeti,
is excluded from this remuneration system and
receives a flat-rate annual remuneration of TEUR
71.3. The remuneration is paid by cost allocation by
the shareholder Obotritia Capital KGaA, as there is no
employment contract between the company and the
Chairman of the Management Board.
The non-performance-related basic remuneration
consists of the fixed annual salary, which is paid in
twelve monthly installments. Some members of the
Management Board use a company car, which is
taxed as a non-cash benefit. No benefits other than
other remuneration are granted. The contracts of the
members of the Board of Management do not
provide for any pension entitlements.
For variable compensation, a compensation system
was introduced in fiscal year 2017/2018 that is geared
to operating targets and is fundamentally based on a
fixed calculation scheme that includes short-term and
long-term components.
Supervisory Board member 2019/2020 (TEUR) 2018/2019 (TEUR)
Dr Maximilian Murawo Chairman (until 22/03/2019)
Hans-Ulrich Sutter Chairman (from 22/03/2019)
Dr. Dirk Markus First Vice Chairman
Achim Betz Second Vice Chairman (from 06/03/2020)
Cathy Bell-Walker (from 06/03/2020)
Antje Lubitz (from 06/03/2020)
0.0
10.0
7.5
6.3
2.5
2.5
4.7
5.3
7.5
5.0
0.0
0.0
Total 28.8 22.5
Deutsche Industrie REIT-AG Remuneration report
81
In the event of any other premature termination
of the employment contract, the Executive Board
contract of Ms Petersen contains a provision that
payments may not exceed the value of two years'
compensation (severance payment cap). In the event
of a change of control, i. e. if one or more sharehol-
ders acting together acquire at least 30 % of the
voting rights in the DIR, she has the right to termina-
te her contract of employment with two months'
notice (special right of termination). If this special
right of termination is exercised, the company will
pay a gross severance payment due at the time of
departure in the amount of the outstanding remune-
ration under the employment contract, but not
exceeding 150 % of the severance payment cap. This
provision does not apply to the other two members
of the Management Board.
Variable remuneration for the 2019/2020 financial yearThe criteria for achieving the objectives were taken
as a basis:
1. Share price performance (weighting 30 %)
20 % year-on-year growth (after elimination
of the dividend paid in the financial year)
based on the respective volume-weighted
average price in September
2. FFO per share (weighting 40 %)
Growth of 20 % compared to the same
period last year
3. Development of EPRA NAV per share
(weighting 30 %)
Growth of 25 % (after elimination of
the dividend paid in the financial year)
compared to the respective reporting
date of 30 September
The degree to which the objectives are achieved is
redefined each year.
The variable remuneration for the 2019/2020 financi-
al year is based on 100% target achievement:
• For Sonja Petersen: TEUR 150.0
• For René Bergmann: TEUR 125.0
The variable remuneration starts from a target
achievement of at least 30 % (including = EUR 0). In
the event of overachievement, there is a cap of 150 %
for each individual target. To this extent, the total
variable remuneration component in 2019/2020 can
amount to a maximum of TEUR 225.0 for Ms Peter-
sen and a maximum of TEUR 187.5 for Mr Bergmann.
Half of the variable remuneration will be paid in cash
after the determination of the financial statements
audited by the auditor (in December of the year). The
other half will be paid out after two further financial
years, provided that the target of 30 % is achieved in
each of the financial years.
The figures are calculated based on VWAP (Septem-
ber) or the balance sheet date of 30 September (NAV)
or the comparable period of the previous year (FFO)
and are based on the IFRS financial statements.
Deutsche Industrie REIT-AG Annual report 2019/2020
82
Remuneration of the Management Board in financial year 2019/2020
The remuneration of the Management Board, which
was earned in the past financial year (benefits
granted), amounts to TEUR 670.0 (previous year:
TEUR 693.7). The amounts received by the
Management Board in the past fiscal year amount
to TEUR 518.3 (previous year: TEUR 501.6).
TEURRolf Elgeti
CEOSonja Petersen
CIORené Bergmann
CFO
2018/2019 (Current)
2019/2020 (Current)
2018/2019 (Current)
2019/2020 (Current)
2019/2020 (Min.)
2019/2020 (Max.)
2018/2019 (Current)
2019/2020 (Current)
2019/2020 (Min.)
2019/2020 (Max.)
Granted Remuneration
Fixed remuneration
Fringe benefits
71.3
0.0
71.3
0.0
120.0
14.2
120.0
12.4
120.0
12.4
120.0
12.4
120.0
7.3
120.0
7.1
120.0
7.1
120.0
7.1
Total 71.3 71.3 134.2 134.4 134.4 134.4 127.3 127.1 127.1 127.1
STI
LTI
0.0
0.0
0.0
0.0
112.5
112.5
92.5
92.5
0.0
0.0
112.5
112.5
75.0
60.9
77.1
77.1
0.0
0.0
93.7
93.8
Total 0.0 0.0 225.0 185.0 0.0 225.0 135.9 154.2 0.0 187.5
Total remuneration 71.3 71.3 359.2 317.4 132.4 357.4 263.2 281.3 127.1 314.6
Related Remuneration
Fixed remuneration
Fringe benefits
71.3
0.0
71.3
0.0
120.0
14.2
120.0
12.4
120.0
7.3
120.0
7.1
Total 71.3 71.3 134.2 132.4 127.3 127.1
STI
LTI
0.0
0.0
0.0
0.0
112.5
0.0
112.5
0.0
56.3
0.0
75.0
0.0
Total 0.0 0.0 112.5 112.5 56.3 75.0
Total remuneration 71.3 71.3 246.7 244.9 183.6 202.1
In addition to the above-mentioned variable remune-
ration, provisions of TEUR 351.8 were formed for
possible bonuses with a long-term incentive effect,
which are distributed among the members of the
Board of Management as follows
Mr Rolf Elgeti TEUR 0.0
Mrs Sonja Petersen TEUR 220.0
Mr René Bergmann TEUR 131.8
Deutsche Industrie REIT-AG Dependency report and overall assessment
83
5. Dependency report and overall assessment
In the 2019/2020 financial year, DIR was a company
dependent on Obotritia Capital KGaA. In accordance
with the statutory provisions, the Management Board
of DIR, for the period during which DIR was a compa-
ny dependent on Obotritia Capital KGaA, prepared a
report on relationships with affiliated companies
(dependency report) for the past financial year and
made a final declaration in it:
"We hereby declare in accordance with Article 312 (3)
of the German Stock Corporation Act (AktG) that our
company received appropriate consideration for each legal
transaction listed in the above report on relations with
affiliated companies according to the circumstances
known to us at the time when the legal transactions were
carried out. No measures were taken or omitted at the
instigation of or in the interests of Obotritia Capital
KGaA or its affiliated companies.“
PICTURE:Kloster Lehnin, Damsdorfer Hauptstraße
Deutsche Industrie REIT-AG Annual report 2019/2020
84
Composition of share capital, voting rights and special rights
As of 30 September 2020, the company's share capital
is divided into 32,079,505 no-par-value bearer shares.
As of the balance sheet date, the company holds no
treasury shares. All shares carry the same rights and
obligations. Each share represents one vote at the
Annual General Meeting. The shares may be freely
transferred in accordance with the legal provisions
applicable to bearer shares. No shares were issued
with special rights conferring powers of control.
Where employees hold shares in the company, they
exercise their control rights directly.
Shareholdings of 10 % or more of the voting rights
No shareholder may directly hold 10 % or more of
the shares or voting rights in accordance with Article
11 (4) REITG (maximum participation limit). If
the maximum participation limit is exceeded, the
shareholder concerned must prove the reduction
in his direct participation in an appropriate form
within two months of being requested to do so by
the Management Board. According to the Articles of
Association, a continued violation of the maximum
participation limit can lead to a transfer of shares
more than the maximum participation limit without
compensation or to a compulsory withdrawal of
these shares without compensation. At the balance
sheet date, no shareholder held 10 % or more of the
voting rights.
Authorisation of the Management Board to
acquire treasury shares and issue new shares:
Authorised capital
On 6 March 2020, the Annual General Meeting
of Deutsche Industrie REIT-AG resolved to autho rise
the Management Board of the company to increase
the share capital of the company, with the approval
of the Supervisory Board, on one or more occasions
until 5 March 2025 by up to a total of
EUR 14,581,593.00 (Authorised Capital 2020/I) by
issuing new no-par value bearer shares against cash
or non-cash contributions.
The new shares must be offered to shareholders for
subscription. However, the Board of Management
was authorized, with the consent of the Supervisory
Board, to exclude the subscription rights of sharehol-
ders in certain cases.
The Board of Management is authorised, with the
consent of the Supervisory Board, to determine
the further details of the capital increases and the
conditions of the share issue, in particular the issue
price.
6. Information relevant for takeovers
pursuant to § 289a Abs. 1 HGB
Deutsche Industrie REIT-AG Information relevant for takeovers
85
Conditional capital
By resolution of the Annual General Meeting on
6 March 2020, the Board of Management was
authorised, with the consent of the Supervisory
Board, to issue bearer bonds with option or con-
vertible bonds (collectively "bonds") with a total
nominal amount of up to EUR 150,000,000.00 with
or without a limited term to maturity on one or more
occasions up to 5 March 2025. It was also authorised
to grant or impose option rights/obligations on
holders and creditors (collectively “owners”) of
option bonds and conversion rights/obligations on
owners of convertible bonds, for bearer shares of the
company with a pro rata amount of the share capital
of EUR 1.00 each, in accordance with the more
detailed provisions of the bond terms and conditions.
Further details can be found in the publication in the
Federal Gazette.
The share capital is conditionally increased by up to
EUR 14,581,593.00 by issuing up to 14,581,593 new
no-par value bearer shares with entitlement to divi-
dends from the beginning of the financial year in
which they are issued (Conditional Capital I). The
conditional capital increase will only be implemented
to the extent that the option or conversion rights are
exercised.
The Board of Management was authorised to determi-
ne the further details of the implementation of the
conditional capital increase.
Changes to the Articles of Association
Amendments to the Articles of Association require
the majority of 75 % of the voting rights represented
at the Annual General Meeting as prescribed by the
German Stock Corporation Act.
Appointment and dismissal of members of the Management Board
The Supervisory Board determines the number and
appoints the full and deputy members of the Ma-
nagement Board, concludes the employment cont-
racts and revokes appointments.
Deutsche Industrie REIT-AG Annual report 2019/2020
86
7. Statement on Corporate Governance pursuant to § 289f HGB.
On 4 December 2020, the Management Board of Deutsche Industrie REIT-AG issued a corporate
governance statement in accordance with Section 289f of the German Commercial Code (HGB)
and made it available on the website https://deutsche-industrie-reit.de/en in the Investor Rela-
tions section under Corporate Governance.
Rostock, 7 December 2020
Deutsche Industrie REIT-AG
Rolf Elgeti Sonja Petersen René Bergmann
Chief Executive Officer Chief Investment Officer Chief Financial Officer
Deutsche Industrie REIT-AG Annual report 2019/2020
88
Financial Statement
PICTURE: Bocholt, Hindenburgstr. Kaiser-Wilhelm-Str.
Balance sheet 90
Statement of comprehensive income 91
Cash flow statement 93
Statement of changes in equity 95
Deutsche Industrie REIT-AG Annual report 2019/2020
90
TEUR Notes 30/09/2020 30/09/2019
Assets
Non-current assets
Investment properties
Intangible assets
Property, plant and equipment
Other financial assets
Derivative financial instruments
Other non-current assets
(2.1)
(2.2)
(2.3)
(2.5)
(2.6)
(2.7)
617,775.2
585,819.7
3.4
1,037.4
22,949.2
491.4
7,474.1
432,788.9
392,849.0
1.8
1,051.9
0.0
0.0
38,886.2
Current assets
Trade and other receivables
Other current assets
Cash and cash equivalents
Non-current assets held for sale
(2.4)
(2.7)
(2.8)
98,073.5
3,420.1
94,618.3
35.1
0.0
5,765.2
815.9
2,883.7
2,065.6
435.0
TOTAL ASSETS 715,848.7 438,989.1
Equity and liabilities
Equity
Issued share capital
Capital reserve
Other reserves
OCI (Other Comprehensive Income)
Retained earnings
(2.9)
(2.9)
(2.9)
(2.9)
(2.9)
377,200.0
32,079.5
229,993.6
50.0
491.4
114,585.5
181,463.2
23,451.9
89,530.2
50.0
0.0
68,431.1
Non-current liabilities
Liabilities to banks
Liabilities from corporate bonds
Liabilities from convertible bonds
Other non-current provisions
Other non-current liabilities
(2.10)
(2.11)
(2.12)
(2.14)
(2.15)
322,932.8
134,664.2
118,065.2
49,088.0
3.0
21,112.4
228,144.6
67,526.5
117,904.0
41,184.0
3.0
1,527.1
Current liabilities
Liabilities to banks
Liabilities to other creditors
Other current provisions
Trade payables
Other current liabilities
(2.10)
(2.13)
(2.14)
(2.16)
(2.15)
15,715.9
7,820.7
0.0
1,542.8
2,043.6
4,308.8
29,381.3
3,956.9
20,177.7
994.0
2,692.0
1,560.7
TOTAL EQUITY AND LIABILITIES 715,848.7 438,989.1
Balance sheetas of 30 September 2020
Deutsche Industrie REIT-AG Financial Statement
91
TEUR Notes 2019/2020 2018/2019
Total revenues
Gross Rental income
Income from operating and ancillary costs
Operating expenses
Net rental income
(3.1)
(3.1)
(3.1)
48,390.5
40,781.3
7,174.2
–16,669.8
31,285.7
30,366.7
25,481.2
4,258.5
–8,789.3
20,950.4
Proceeds from salel of investment properties (3.2) 435.0 627.0
Expenses on sale of investment properties (3.2) –435.0 –627.0
Value change of the sold properties 0.0 57.0
Net proceeds from the sale of investment properties (3.2) 0.0 57.0
Other income (3.3) 175.6 373.7
Result from the revaluation of investment properties (3.4) 36,981.7 37,552.1
Subtotal 68,443.0 58,933.2
Personnel expenses
Amortisation of intangible assets, depreciation of property, plant and equipment
Impairment loss of inventories and receivables
Other administrative expenses
Administrative expenses
(3.5)
(2.2, 2.3)
(3.6)
(3.7)
–854.2
–157.8
–2,564.1
–2,578.2
–6,154.3
–808.3
–115.5
–208.6
–1,592.9
–2,725.3
EBIT 62,288.7 56,207.9
Valuation result of financial liabilities
Interest income
Interest expense
Ground rents (Finance lease)
Finance result
(3.8)
(3.8)
(3.8)
(3.8)
–7,904.0
5,473.2
–8,147.2
–890.0
–11,468.0
–832.0
98.6
–6,824.7
0.0
–7,558.1
EBT 50,820.7 48,649.8
Other tax (3.9) –0.2 22.1
Net income 50,820.5 48,671.9
income for the financial year from 1 October 2019 – 30 September 2020
Statement of comprehensive
Deutsche Industrie REIT-AG Annual report 2019/2020
92
Net income for the year as per income statement 50,820.5 48,671.9
Items not reclassified to profit/loss
Items reclassified to profit/loss
0.0
491.4
0.0
0.0
Impairment of acquired loans 1,733.8 0.0
Change in fair value of acquired loans –1,733.8 0.0
Cash flow hedge reserve 491.4 0.0
Total other comprehensive income 491.4 0,0
Total comprehensive income 51,311.9 48,671.9
Earnings per share (in €)
Undiluted result per share
Diluted result per share e
1.73
1.73
2.25
2.08
Deutsche Industrie REIT-AG Financial Statement
93
TEUR Notes 2019/2020 2018/2019
Net income 50,820.5 48,671.9
+/– Interest expense/interest income (3.8) 3,563.9 6,726.1
+/– Depreciation. amortisation and write-down/ reversals of intangible assets, tangible assets and financial assets
(2.2, 2.3)
157.8 115.5
+ Impairments on inventories and receivables (3.6) 2,564.1 208.7
–/+ Gains / Losses from the revaluation of investment properties (3.4) –36,981.7 –37,552.1
–/+ Profit/loss from the valuation of financial liabilities (3.8) 7,904.0 832.0
–/+ Gains / Losses on disposal of investment properties (3.2) 0.0 –57.0
+/– Increase / decrease in provisions (2.14) 548.8 –693.9
– Income taxes paid (2.18) 0.0 –2,583.2
–/+ Increase/decrease in inventories, trade receivables and other assets not attributable to investing or financing activities
(2.7) –13,009.1 –290.6
+/– Increase/decrease in trade payables and other liabilities not attributable to investing or financing activities
(2.15, 2.16)
2,093.6 1,755.6
Cash flow from operating activities 17,661.9 17,133.0
+ Proceeds from disposals of investment properties (less disposal costs) (3.2) 435.0 627.0
– Cash payments related to property investments (2.1) –104,973.7 –215,529.4
– Cash payments related to other investments in intangible and tangible assets (2.2, 2.3)
–132.0 –251.8
+ Cash Inflow due to financial investments in the context of short-term financial management
(2.7) 17,652.2 16,612.4
– Cash Outflow due to financial investments in the context of short-term financial management
(2.7) –140,306.4 0.0
+ Received interests (3.8) 1,926.6 538.9
Cashflow from investment activities –225,398.3 –198,002.9
Cash flow statement
Deutsche Industrie REIT-AG Annual report 2019/2020
94
+ Cash proceeds from the issue of shares (2.9) 8,627.6 5,451.9
+ Cash proceeds from capital increases (2.9) 142,506.5 59,042.0
– Costs related to capital increases –2,043.1 –1,488.6
+ Cash inflow from issuing corporate bonds (2.11) 0.0 28,100.0
– Costs related to issuing corporate bonds (2.11) 0.0 –101.1
+ Cash inflow from issuing convertible bonds (2.12) 0.0 40,352.0
– Costs related to issuing convertible bonds (2.12) 0.0 –161.3
+ Cash inflow from loans (2.10) 77,620.0 61,875.0
– Costs related to the issuance of loans –214.4 –42.5
– Amortisation of loans (2.10) –6,448.3 –2,268.0
– Interests paid (3.8) –8,762.8 –5,916.1
– paid interests to landowner ground rent (3.8) –913.5 0.0
– Paid dividends to shareholders –4,666.1 –2,025.0
Cash flow from financing activities 205,705.9 182,818.4
Change in cash and cash equivalents
Cash and cash equivalents at the beginning of the period (2.8)
–2,030.5
2,065.6
1,948.5
117.1
Cash and cash equivalents at the end of the period (2.8) 35.1 2,065.6
Deutsche Industrie REIT-AG Financial Statement
95
Statement of changes in equity
TEUR Issued share capital Capital reserveOther
reservesOCI
Retained earnings
Total equity
As at 01/10/2018 18,000.0 31,976.8 50.0 0.0 21,784.2 71,811.0
Period result
Total comprehensive income
Cash capital increase/ - reduction
cost of capital measures
Dividend distribution
0.0
0.0
5,451.9
0.0
0.0
0.0
0.0
59,042.0
–1,488.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
48,671.9
48,671.9
0.0
0.0
–2,025.0
48,671.9
48,671.9
64,493.9
–1,488.6
–2,025.0
As at 30/09/2019 23,451.9 89,530.2 50.0 0.0 68,431.1 181,463.2
As at 01/10/2019 23,451.9 89,530.2 50.0 0.0 68,431.1 181,463.2
Period result
Other comprehensive income
Total comprehensive income
Cash capital increase/ - reduction
Addition / Withdrawal from reserves
cost of capital measures
Dividend distribution
0.0
0,0
0.0
8,627.6
0.0
0.0
0.0
0.0
0,0
0.0
142,506.5
0.0
–2,043.1
0.0
0.0
0,0
0.0
0.0
0.0
0.0
0.0
0.0
491.4
491.4
0.0
0.0
0.0
0.0
50,820.5
0,0
50,820.5
0.0
0.0
0.0
–4,666.1
50,820.
491.4
51,311.9
151,134.1
0.0
–2,043.1
–4,666.1
As at 30/09/2020 32,079.5 229,993.6 50.0 491.4 114,585.5 377,200.0
96Deutsche Industrie REIT-AG Annual report 2019/2020
1. General information 98
1.1. Deutsche Industrie REIT-AG 98
1.3. Key discretionary decisions and estimates 99
1.4. Application of IFRS in financial year 2019/2020 100
1.5. Individual accounting and valuation principles 102
2. Notes to the balance sheet 112
2.1. Investment property 112
2.2. Intangible assets 115
2.3. Property, plant, and equipment 115
2.4. Trade receivables 116
2.5. Other non-current financial assets 117
2.6. Non-current derivative financial instruments 118
2.7. Other non-current and current assets 118
2.8. Liquid funds 118
2.9. Equity 119
2.10. Liabilities to banks 120
2.11. Liabilities from corporate bonds 120
2.12. Liabilities from convertible bonds 121
2.13. Liabilities to other lenders 122
2.14. Other provisions 122
2.15. Other non-current and current liabilities 122
2.16. Trade payables 123
2.17. Leasing 123
2.18. Taxes and deferred taxes 125
3. Notes to the statement of comprehensive income 126
3.1. Net rental income 126
3.2. Net proceeds from the sale of investment properties 126
3.3. Other Company income 127
3.5. Personnel expenses 127
3.6. Impairment loss of inventories and receivables 127
3.7. Other administrative expenses 128
3.8. Finance result 129
3.9. Other taxes 129
3.10. Earnings per share 130
NotesDeutsche Industrie REIT-AG, Rostock
Notes for the financial year from 01/10/2019–30/09/2020
97Deutsche Industrie REIT-AG Notes
4. Notes to the cash flow statement 132
5. Disclosures on financial instruments and fair value 134
5.1. Financial risk management 134
5.2. Net results from financial instruments 139
5.3. Offsetting financial assets and liabilities 139
5.4. Capital management 140
5.5. Valuation categories of financial instruments according to IFRS 9 142
5.6. Fair value of assets and liabilities 144
6. Other information 145
6.1. Contingent liabilities and other financial obligations 145
6.2. Obligations under leases 145
6.3. Transactions with related companies and persons 146
6.4. Supervisory Board and Management 148
6.5. Consolidated Financial Statements 149
6.6. Fee of the auditor 150
6.7. Significant events after the balance sheet date 150
6.8. Corporate Government Codex (Declarati-on on the German Corporate Governance Code pursuant to Art. 161 AktG) 151
Assurance of legal representatives 151
Audit Opinion of the independent individual financial statements 152
Statement by the Executive Board regarding compliance with the requirements of the REITG 156
PICTURE: Altlandsberg, Seeberger Straße
98Deutsche Industrie REIT-AG Annual report 2019/2020
1. General information1.1. Deutsche Industrie REIT-AG
Deutsche Industrie REIT-AG (hereinafter referred to as
“DIR”, “Company” or “ Corporation”; until 17 Octo-
ber 2017 trading as Jägersteig Beteiligungs GmbH) is a
real estate company focusing on Light Industrial real
estate in Germany with its registered office in Ros-
tock. According to the Articles of Association, the
object of the Company is the management of its own
assets through the acquisition, management and
sale of properties and equity interests; transactions
requiring approval are excluded. Furthermore, the
Company is entitled to take all measures that are
directly or indirectly suitable for serving this corpo-
rate purpose. The focus is on activities that are geared
to the long-term and sustainable increase in value of
the real estate portfolio. The Company is authorised
to establish, acquire, lease, or invest in similar or
similar companies. It may also establish branch offic-
es in Germany and abroad. The DIR is registered in
the Commercial Register of the Rostock Local Court
under HRB 13964. The registered office is August-
Bebel-Str. 68 in 14482 Potsdam.
The DIR share (ISIN DE000A2G9LL1) has been listed
on the Berlin Stock Exchange since 7 December 2017.
Since 1 January 2018, the company has had the status
of a REIT (Real Estate Investment Trust) and is
therefore exempt from income tax at company level.
Since 19 December 2018, the shares have also been
listed in the sub-segment of the regulated market
with additional post-admission obligations (Prime
Standard) on the Frankfurt Stock Exchange and
therefore also in XETRA.
The separate financial statements of DIR as of
30 September 2020 were prepared on 7 December
2020. The Supervisory Board is expected to approve
these separate financial statements at its meeting on
16 December 2020. The IFRS individual financial
statements were prepared voluntarily due to the
stock exchange listing.
1.2. Basics of the preparation of the individual financial statements
The individual financial statements as of 30 Septem-
ber 2020 were prepared in accordance with the
International Financial Reporting Standards (IFRS)
as applicable in the EU at the reporting date. In
addition, the provisions of Section 315e (1) of the
German Commercial Code (HGB) were applied
analogously.
All relevant standards and interpretations whose
application was mandatory for the financial year were
observed.
The reporting period covers the period from 1
October 2019 to 30 September 2020, with the balance
sheet as of 30 September 2019 and the statement of
comprehensive income for the period from 1 October
2018 to 30 September 2019 serving as comparative
figures.
The individual financial statements comprise the
balance sheet, statement of comprehensive income,
statement of changes in equity, cash flow statement
and the notes to the financial statements and are
presented in euros (EUR). All amounts are generally
shown in thousands of euros (TEUR) (exceptions are
indicated), which may result in rounding differences.
The company is currently a one-segment company.
Sales are generated exclusively with customers based
in Germany in the commercial real estate segment.
99Deutsche Industrie REIT-AG Notes
All properties are located in Germany. In the inter-
nal management there is no differentiation of geo-
graphical areas. Other services are not available. In
the year under review, sales revenues amounted to
TEUR 41,216.3 (previous year: TEUR 26,108.2). In
2019/2020, the largest customer accounted for sales
revenues of TEUR 2,799.4 (previous year: TEUR
2,559.5). All income and expenses as well as all
assets and liabilities are reflected in the consolidated
financial statements. The annual financial statements
were prepared under the going concern assumption.
The statement of comprehensive income was
prepared using the total cost method.
1.3. Key discretionary decisions and estimates
In applying the accounting policies, the Management
Board has made the following discretionary decisions
that materially affect the amounts in the individual
financial statements:
• Regarding the properties held by the Company,
the Management Board must decide on each
balance sheet date whether they are to be held
long-term for rental or appreciation purposes or
whether they are to be sold. Depending on this
decision, the real estate is balanced in accordance
with the principles for investment properties,
as land with unfinished and finished buildings
(inventories) intended for sale or as non-current
assets intended for sale and measured at (amor-
tised) cost or at fair value in accordance with the
classification.
• In assessing the lease term, management considers
all facts and circumstances that provide an
economic incentive to exercise renewal options or
not to exercise termination options. Any resulting
changes in the term of the lease are only included
in the lease term if there is sufficient certainty that
they will be exercised. Further details are provid-
ed in section 1.5.12 and 6.2.
• There is also scope for discretion in determining
the time of revenue recognition and whether
DIR acts as principal or agent for operating and
ancillary costs in accordance with IFRS 15. In
accordance with IFRS 15 “Revenue from contracts
with customers”, revenue is recognised when the
customer receives control of the agreed goods and
services. In the case of property sales, this occurs
when the benefits and burdens are transferred.
The company acts primarily as a principal in
respect of operating and ancillary costs, as it
provides the services itself and bears responsibility
for their fulfilment. Please refer to section 1.5.11
for further explanations.
The company makes estimates and assumptions
concerning the future. The estimates derived from
these may naturally deviate from the actual circum-
stances at a later date. The fair value measurements
of the company as of 30 September 2020 contain
significant measurement uncertainties due to market
fluctuations resulting from the corona pandemic.
These conditions do not invalidate the valuation but
imply a significantly higher level of uncertainty than
under normal market conditions. In view of this
uncertainty, the Notes contain a sensitivity analysis
of the assumptions used in the valuation of the
100Deutsche Industrie REIT-AG Annual report 2019/2020
investment properties. The estimates and assump-
tions that entail a significant risk in the form of a
material adjustment to the carrying amounts of assets
and liabilities within the next financial year are
discussed below:
• The fair values of investment properties are based
on the findings of independent experts appointed
for this purpose. Valuation is based on the dis-
counted cash flow method, using expected future
cash flows. Accordingly, factors such as future
rental income and applicable interest rates are
estimated by the Company in collaboration with
the appraiser, which have a direct impact on the
fair value of the investment properties. The fair
values of the investment properties, including
those reported in accordance with IFRS 5 amount-
ed to TEUR 585,819.7 (previous year: TEUR
393,284.0) at the balance sheet date.
• As part of the review of financial assets, the carry-
ing amounts (amortised cost or fair value) at
which other financial assets are balanced are
compared with their fair values at the end of each
financial year. The appropriateness of the carrying
amounts is assessed based on the information
available about the borrowers and impairment
losses are recognised based on estimated default
rates. If there is a foreseeable reduction in the fair
values, appropriate impairments are made to the
carrying amounts. The carrying amount of finan-
cial assets reported under trade receivables, other
current and non-current financial assets, and
other current assets totalled TEUR 118,676.2
(previous year: TEUR 1,958.5) at the reporting
date and relates to receivables from tenants,
receivables from loans purchased from Creditshelf
Service GmbH and receivables from loans to
affiliated companies. The value adjustment table
used in the previous year was adjusted in line with
the new procedure for measuring impairment of
trade receivables, which is described in section
1.5.5. The separate consideration of the main
receivables shifts the distribution of receivables
to the individual maturities. This allows a more
precise measurement of the impairment. The
maturity bands were adjusted in the 2019/2020
financial year. If the maturity bands of the previ-
ous period had been continued, the impairment
would have been TEUR 98.4 higher.
• In the case of other provisions and contingent
liabilities, various assumptions have to be made,
e.g. regarding the probability of occurrence and
the amount of utilisation. All information availa-
ble at the time the balance sheet was prepared was
considered. Other provisions amounted to TEUR
1,545.8 (previous year: TEUR 997.0) at the balance
sheet date.
1.4. Application of IFRS in financial year 2019/2020
DIR has continued to apply the same accounting and
valuation methods and disclosure requirements as in
the previous year unless new standards or interpreta-
tions were required to be applied.
101Deutsche Industrie REIT-AG Notes
• The following new standards, amendments to standards and new interpretations were applied by DIR for the first time in the year under review:
EU Endorsement Standard ContentInitial adoption manda-tory for financial years
beginning on or after
Effects on the annual financial statements
of DIR
31/10/2017 IFRS 16 New standard "Leases". 01/01/2019 No significant
22/03/2018 Amendments to IFRS 9 Early repayment arrangements with negative compensation 01/01/2019 None
23/10/2018 IFRIC 23 Uncertainties regarding the income tax treatment 01/01/2019 None
13/03/2019 Amendments to IAS 19 Plan amendments, curtailments, or settlements 01/01/2019 None
14/03/2019 Annual improvement project
„Improvements to IFRS 2015 − 2017 Cycle “ 01/01/2019 None
08/02/2019 Amendments to IAS 28 Long-term Interests in Associates and Joint Ventures 01/01/2019 None
There were no effects from the mandatory application
of the new standards in financial year 2019/2020.
The company acts as a lessee of leasehold contracts
and a motor vehicle. Deutsche Industrie applies the
modified retrospective method for all leased assets
using the exemption option in IFRS 16.C8(b)(i), so
that there is no first-time adoption effect to be
recognised in retained earnings. For leaseholds
previously balanced as finance leases under IAS 17,
the carrying amount of the leased asset immediately
prior to the first-time application of IFRS 16 was
recognised under IAS 17 and the carrying amount of
the lease liability under IAS 17 was recognised as the
initial carrying amount of the right of use and the
lease liability under IFRS 16. The measurement
principles of the new leasing standard were only
applied thereafter, but did not result in any changes
in measurement, as there were no residual value
guarantees, variable lease payments or similar. The
rights of use under leasehold contracts continue to be
reported in the balance sheet under non-current
assets in the item investment property. The corre-
sponding lease liability is included in other current or
non-current liabilities.
In addition, Deutsche Industrie also acts as lessor for
the motor vehicle which it has itself leased, since it
has assigned it to Solitaire Verwaltungsgesellschaft
mbH & Co. KG for use. The monthly leasing instal-
ments paid by DIR are passed on in full to Solitaire, as
are the (operating) costs associated with the vehicle,
so that no costs arise from this for Deutsche Industrie.
For the first time, a right of use and a leasing liability
were balanced for the leased vehicle, as this repre-
sents an operating lease under IAS 17. The right of
use was disclosed under the balance sheet item
property, plant, and equipment. The corresponding
lease liability is included in current or non-current
other financial liabilities. For further information
please refer to Note 2.17.
102Deutsche Industrie REIT-AG Annual report 2019/2020
• The following new standards, interpretations, and amendments to published standards, the application of which was not yet mandatory for DIR in financial year 2019/2020, were not applied prematurely by the Company:
EUR Endorsement Standard Content
Initial adoption mandatory for
financial years be-ginning on or after
Effects on the annual financial
statements of DIR
29/11/2019 Framework Changes to the Framework 01/01/2020 No significant
21/04/2020 Amendments to IFRS 3 Business Combinations 01/01/2020 None
29/11/2019 Amendments to IAS 1 and IAS 8 Definition of Material 01/01/2020 No significant
15/01/2020 Amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform 01/01/2020 No significant
09/10/2020 Amendments to IFRS 16 Leases - COVID-19 19 rent deferrals 01/06/2020 No significant
Not yet adopted IFRS 17 New standard “Insurance contracts “ 01/01/2023 None
Not yet adopted Amendments to IAS 1 Classification of liabilities 01/01/2022 No significant
Not yet adoptedAmendments to IFRS 3, IAS 16, IAS 37, and annual improvements
Business Combinations, Property, Plant and Equipment, Provisions, contingent liabilities, and contingent assets
01/01/2022 None
Not yet adopted Amendments to IFRS 4 Insurance policies 01/01/2020 None
Not yet adopted Amendments to IFRS 9, IAS 39 and IFRS 7
Interest Rate Benchmark Reform Phase 2 01/01/2020 No significant
In addition, DIR expects the other new standards and
interpretations published to have no significant
impact on the accounts.
1.5. Individual accounting and valuation principles
1.5.1. PrincipleThese financial statements are based on the going
concern assumption. To the extent permissible, the
valuation is predominantly based on amortised cost.
An exception to this is the DIR credit-shelf loans and
interest rate swaps, which are measured at fair value
with no effect on income, and investment properties,
which are voluntarily measured at fair value.
No changes to the accounting policies were made in
financial year 2019/2020 except for the application
of new standards.
1.5.2. Investment property and real estate held for saleThe DIR classifies property on initial recognition
according to its intended use either as investment
property (IAS 40), as inventory property (IAS 2) or as
103Deutsche Industrie REIT-AG Notes
owner-occupied property in property, plant, and
equipment (IAS 16). Property under leases with the
Company as lessee is classified and balanced as
investment property. Property that is highly likely to
be sold within twelve months is disclosed as an asset
held for sale (IFRS 5). As a rule, DIR only has invest-
ment property, as the business model is based on the
long-term, sustainable leasing of the property.
Investment property is initially recognised at cost
including incidental costs. In subsequent measure-
ment, investment property is carried at fair value,
which reflects market conditions on the balance sheet
date. A gain or loss arising from changes in fair value
is recognised in the statement of comprehensive
income. If there is a change in fair value due to an
existing purchase price, these effects are disclosed
separately in net income from sales. Subsequent costs
for the expansion and conversion of the property are
considered if they contribute to an increase in the fair
value of the property. Legal and consulting fees
attributable to investment properties are also reported
in net rental income. The properties are generally
depreciated on a straight-line basis over useful lives of
5 to 53 years. The depreciation methods and useful
lives are reviewed at the end of each financial year
and adjusted if necessary.
According to the regulations of IFRS 13, the best
possible use of an object must be assumed when
measuring investment properties. Planned changes in
use are therefore considered in the valuation provid-
ed that technical feasibility, legal admissibility, and
financial feasibility are given.
A revaluation of the properties is carried out annually
on 30 June. If there are significant changes in the
input factors by the reporting date, appropriate
adjustments are made. The value is determined by
an independent external expert using recognised
valuation methods such as the discounted cash flow
method. The experts have the appropriate profess-
ional qualifications and experience to perform the
valuation. The results of the appraisers are based on
information provided by the Company. Input factors
such as the current list of tenants, maintenance and
administrative costs, vacancy data and assumptions
made by the appraiser based on market data and
assessed based on his professional qualifications, e. g.,
future market rents, typical maintenance and admin-
istrative costs, structural vacancy rates or discount
and capitalisation interest rates, are included in the
calculation of fair value.
The information provided to the appraiser and
the assumptions made as well as the results of the
property valuation are analysed by the Manage-
ment Board.
Advance payments made on investment properties
are reported under other non-current assets.
Investment property is classified as held for sale
if Deutsche Industrie decides to sell the property
concerned if the property is available for immediate
sale and if the sale is expected to be completed within
twelve months from that date (IFRS 5). They are
measured at fair value as before.
104Deutsche Industrie REIT-AG Annual report 2019/2020
1.5.3. Intangible assetsAcquired intangible assets are initially recognised at
cost. After initial recognition, intangible assets are
carried at cost and amortised on a straight-line basis
over their respective useful lives, generally three
years.
1.5.4. Property, plant, and equipmentProperty, plant, and equipment is carried at cost less
accumulated depreciation and accumulated impair-
ment losses. Depreciation was calculated using the
straight-line method based on estimated useful lives
of generally 3 to 10 years (factory and office equip-
ment). Depreciation methods and useful lives are
reviewed at the end of each financial year and
adjusted if necessary. The carrying amounts of
property, plant and equipment are reviewed for
impairment as soon as there are indications that the
carrying amount exceeds the recoverable amount.
1.5.5. Financial assets and liabilitiesClassification of financial assets
IFRS 9 contains a classification and measurement
approach for financial assets that reflects the business
model within which the assets are held and the
characteristics of their cash flows. A reclassification is
only made if the business model used to manage
financial assets changes. The three classification
categories for financial assets are as follows:
• Fair value through other comprehensive income
(FVtOCI) – not recognised in profit or loss at fair
value with changes in value in other comprehen-
sive income
• Measured at fair value through profit or loss
(FVtPL) with changes in value in profit or loss
recognised in profit or loss
• Valued at amortized cost (AC)
The Company measures its financial assets at amor-
tised cost if two conditions are met:
• The financial asset is held within the framework
of a business model whose objective is to hold
financial assets to collect the contractual cash
flows; and
• The terms of the contract result in cash flows that
represent only principal and interest payments on
the outstanding principal.
At DIR, the Amortized Cost (AC) measurement
category includes, among other things, trust and
deposit accounts, which represent payment balances
due on demand, trade receivables and prepaid costs.
Financial assets at fair value through profit or loss:
• Debt instruments for which the contractual
cash flows consist solely of principal and interest
payments on the outstanding principal and
which are held as part of a business model whose
objective is to collect the contractual cash flows
and sell the financial assets.
This category includes loans acquired from DIR to
private borrowers from Creditshelf Service GmbH.
These serve the companies as short-term liquidity
investments and are resold when liquidity is required
and, if necessary, further loans are acquired later.
The business model of holding and selling therefore
applies here. In addition, cash flow hedges are meas-
ured at fair value through profit or loss. As some of
the loans have a remaining term of more than one
year, they were allocated to non-current and current
items accordingly. A short-term sale is possible
irrespective of this. Where there is a concrete inten-
tion to sell and the conditions are met, a presentation
is made in accordance with IFRS 5.
Financial assets measured at fair value through profit
or loss:
• Assets that do not meet the criteria of the category
“at amortised cost” or “at fair value through
equity”.
DIR has no financial assets that fall into this measure-
ment category or has chosen the fair value option.
105Deutsche Industrie REIT-AG Notes
Derivatives are initially recognised at fair value on the
date a derivative transaction is entered into and are
subsequently remeasured at fair value at the end of
each reporting period. The accounting for changes in
fair value in subsequent periods depends on whether
the derivative is designated as a hedging instrument
and, if so, on the nature of the underlying hedging
relationship. In the reporting period, Deutsche
Industrie used interest rate swaps for the first time
which are balanced as derivatives within a hedging
relationship.
Derivatives and hedging transactions
The interest rate swaps were designated by DIR to
hedge a specific risk associated with the cash flows
of assets and liabilities balanced and highly probable
forecast transactions and therefore represent cash
flow hedges. At the inception of the hedge relation-
ship, the Company documents the economic rela-
tionship between the hedging instruments and the
hedged items, including whether changes in the
cash flows of the hedging instruments are expected
to offset changes in the cash flows of the hedged
items. The risk management objectives and strategies
underlying the hedging instrument are also docu-
mented. The fair value of a hedging derivative is
classified in full as a non-current financial asset or
non-current financial liability if the remaining
term of the underlying transaction is more than
12 months. If this is less than 12 months, it is
classified as a current financial asset or current
financial liability.
The fair value of interest rate swaps is determined as
the present value of estimated future cash flows based
on forward rates at the balance sheet date.
The effectiveness of hedging relationships is deter-
mined at the inception of the hedge and by regular
prospective assessments to ensure that an economic
relationship exists between the hedged item and the
hedging instrument. Deutsche Industrie has entered
into interest rate swaps with terms identical to those
of the hedged items, such as reference interest rates,
interest rate adjustment dates, payment dates, maturi-
ties, and nominal amounts. The Company does not
hedge all of its loans, but only the loans with variable
interest rates. During the financial year, all material
contractual terms and conditions were identical, so
that in each case there was an economic relationship
between the underlying transaction and the hedging
transaction.
Ineffectiveness of hedges with interest rate swaps is
assumed for the following reasons:
• Adjustments for the default risk of the contracting
parties to the interest rate swap that are not offset
by changes in the value of the hedged loans
• Different contractual terms between interest rate
swaps and secured loans
There was no ineffectiveness regarding interest rate
swaps in the reporting year.
The effective portion of changes in the fair value of
derivatives designated as hedging instruments in cash
flow hedges is recognised in the hedging reserve for
cash flow hedges as a component of equity. The gain
or loss relating to the ineffective portion is recognised
directly in profit or loss under other gains or losses.
Cumulative amounts recognised in equity are
reclassified in the periods in which the hedged item
affects profit or loss. The gain or loss on the effective
portion of interest rate swaps that hedge borrowings
at variable rates is included in finance costs in profit
or loss in the period in which the interest expense on
the hedged borrowings is incurred.
When a hedging instrument expires, is sold, or
terminated or the hedging relationship no longer
meets the criteria for hedge accounting, cumulative
deferred hedging gains or losses and the deferred
hedging costs remain in equity until the forecast
transaction occurs and results in the recognition of
a non-financial asset such as inventories. When the
forecast transaction is no longer expected to occur,
the cumulative hedging gains and losses and the
deferred hedging costs recognised in equity are
reclassified immediately to profit or loss.
106Deutsche Industrie REIT-AG Annual report 2019/2020
Valuation of financial assets
On initial recognition, the Company values a finan-
cial asset and a financial liability at the fair value of
the consideration received or paid on the trade date,
plus or minus directly attributable transaction costs.
Trade receivables that do not contain a significant
financing component are initially recognised at the
transaction price.
Financial assets measured at amortised cost are
subsequently measured at amortised cost using the
effective interest method. The amortised cost is
reduced by impairment losses. Interest income
calculated using the effective interest method is
reported under financial income. Any gain or loss,
interest income, currency gains and losses and
impairments arising from the derecognition of a
financial asset are recognised in the income
statement and reported separately.
For assets measured at fair value with no effect on
profit or loss, changes in fair value and impairments
are recognised in other comprehensive income,
except for impairment losses or income and interest
income, which are recognised in profit or loss. When
the financial asset is derecognised, the cumulative
gain or loss recognised in other comprehensive
income is reclassified from equity to profit or loss.
Impairment of non-derivative financial assets
At the end of each reporting period, the entity shall
assess whether there is objective evidence that a
financial asset or group of financial assets is when:
• As a result of one or more events that occurred
after the initial recognition of the asset (‘loss
event’),
• There was objective evidence of impairment, and
• This loss event has an impact on the expected
future cash flows of the financial asset that can be
estimated reliably.
Impairment losses on financial assets are no longer
recognised using the incurred-loss-model but using
the expected-loss-model. This results in two valuation
levels:
• Lifelong loan defaults: Expected credit losses due
to possible default events over the entire term of
a financial instrument
• 12-month loan defaults: Expected credit defaults
due to possible default events within the next
twelve months after the balance sheet date.
The impairment method depends on whether there
is a significant increase in credit risk. In assessing
whether the credit risk of a financial asset has in-
creased significantly since initial recognition and in
estimating expected credit losses, the entity considers
appropriate and reliable information that is relevant
and readily obtainable without undue delay or
expense. This includes quantitative and qualitative
information and analyses based on the Company’s
experience and forward-looking information.
Measurement according to the concept of life-long
credit losses is to be applied if the credit risk of a
financial asset has increased significantly since initial
recognition on the balance sheet date; otherwise,
measurement according to the concept of 12-month
credit losses is to be applied. However, measurement
under the lifelong loan loss concept must always be
applied to trade receivables and contractual assets
without a significant financing component.
Impairments are measured in the amount of the
expected credit losses over the term of the loan. This
does not apply to bank balances for which the default
risk has not increased significantly since initial
recognition. In this case, the allowance is measured
in the amount of the expected 12-month credit loss.
In the 2019/2020 financial year, the procedure for
impairments of rent receivables was changed so that
the assessment based on the age structure is now
preceded by a separate consideration of material
receivables. In this context, material rent receivables
107Deutsche Industrie REIT-AG Notes
are assessed separately, written down on an individu-
al basis and subsequently no longer included in the
maturity analysis.
In the case of rent receivables, the main deferrals
were already settled during the year. At the balance
sheet date, there were only insignificant outstanding
rent receivables due to Covid-19. As tenants in
Deutsche Industrie are mainly logistics companies
and are therefore only marginally affected by the
effects of the Corona pandemic, there were no
significant rent deferrals or defaults in the reporting
period. The loans acquired were reviewed for in-
creased default risks and adjusted where necessary.
For financial assets measured at fair value with no
effect on income, the impairment loss was measured
based on expected defaults. Please refer to section
5.1.1 Default risks for further details.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and presented
as a net amount in the balance sheet when the entity
has a present legal right to set off the recognised
amounts and intends either to settle on a net basis, or
to realise the asset and settle the liability simultane-
ously.
In the period presented, DIR has no financial assets
and liabilities that are offset in this way.
Classification of financial liabilities
The financial liabilities of DIR are generally measured
at amortised cost. Financial liabilities in this category
include liabilities to banks, liabilities to other lenders,
liabilities from corporate bonds, trade payables and
other current financial liabilities.
Composite financial instruments are classified as debt
and equity components if the definition of an equity
instrument is met.
Embedded derivatives must be separated from their
host contract if their economic characteristics and
risks are not closely related to those of the host
contract if a comparable stand-alone instrument
meets the definition of a derivative and if the com-
pound instrument is not measured at fair value
through profit or loss. If an embedded derivative is
separated, the components are accounted for and
measured separately in accordance with the relevant
regulations.
The convertible bond issued by DIR does not include
an equity component in the balance sheet due to a
cash settlement option on the part of DIR. Instead,
the entire convertible bond is reported as a liability
at fair value through profit or loss.
Valuation of financial liabilities
When liabilities are recognised initially, they are
measured on the trade date at the fair value of the
consideration received net of transaction costs. After
initial recognition, liabilities are measured at amor-
tised cost using the effective interest method. The
difference between the amount paid out (less transac-
tion costs) and the repayment amount is recognised
in the statement of comprehensive income over the
term of the liability using the effective interest
method.
The convertible bond is measured at fair value
through profit or loss. The portion of the changes in
fair value that relates to its own default risk would be
recognised in other comprehensive income. The DIR
determines the number of changes in fair value attrib-
utable to the default risk by first determining the
changes resulting from changes in market conditions
that are significant to the market risk and then
deducting this change from the total change in the
fair value of the convertible bond. The changes in
market conditions relevant to market risk include
changes in the reference interest rate. Changes in
the fair value of the embedded conversion right are
considered when assessing changes in the fair value
arising from market risk.
Financial liabilities are derecognised when the
obligations underlying the liability are discharged,
cancelled, or expire. They are also derecognised and
108Deutsche Industrie REIT-AG Annual report 2019/2020
replaced by a new liability if a modification to the
liability results in a change in the contractual cash
flows. The difference between the carrying amount of
the derecognised financial liability and the considera-
tion paid, including any non-cash assets transferred
or liabilities assumed, is recognised as finance income
or finance expense in profit or loss.
Financial liabilities are classified as current unless
the Company has an unconditional right to defer
settlement of the liability for at least 12 months
after the balance sheet date.
1.5.6. Land with unfinished and finished buildings and other suppliesLand with unfinished and finished buildings and
other inventories are measured at the lower of cost
or net realisable value. Net realisable value is the
estimated selling price in the ordinary course of
business, less estimated costs of completion and
necessary selling expenses. Borrowing costs incurred
in connection with the acquisition or construction
of real estate are capitalized if the relevant conditions
are met. Land with unfinished and finished buildings
includes those properties for which resale was as-
sumed at the time of acquisition. If the intention
to sell is abandoned, the property is reclassified as
investment property.
1.5.7. Income tax refund claims and liabilities as well as deferred taxesTax refund claims and tax liabilities are valued at the
amount expected to be refunded or paid to the tax
authorities. This is based on the tax rates and tax laws
that apply on the balance sheet date.
Since the DIR has the status of a REIT company since
the beginning of 2018, it has since been exempted from
income tax at Company level if the criteria of the REIT
Act are complied with. In this respect, no deferred taxes
are to be recognised for the period of the tax exemp-
tion. For this reason, the existing deferred tax assets and
liabilities were reversed through profit or loss in the
financial year.
1.5.8. Liquid assetsCash and cash equivalents include cash on hand and
bank balances with original maturity at the time of
acquisition less than three months.
1.5.9. Equity demarcationDebt and equity instruments are classified as financial
liabilities or equity in accordance with the substance
of the contractual agreement. An equity instrument
is a contract that gives rise to a residual claim on the
assets of a company after deduction of all related
debts. Equity instruments are recognised at the
proceeds received less any directly attributable
issue costs.
Issuing costs are those costs that would not have been
incurred without the issue of the equity instrument.
Such costs of an equity transaction (such as costs
arising from capital increases), less any associated
income tax benefits, are accounted for as a deduction
from equity and offset against the capital reserve with
no effect on income.
The components of a compound instrument issued
by the Company (such as a convertible bond) are
recognised separately as a financial liability and as an
equity instrument in accordance with the substance
of the agreement to the extent that the conditions for
an equity component exist.
At the time of issue, the fair value of the liability
component is determined using market interest rates
applicable to comparable non-convertible instru-
ments. This amount is accounted for as a financial lia-
bility based on amortised cost using the effective
interest method until fulfilment of the instrument’s
conversion or maturity date. The determination of
the equity component is made by subtracting the
value of the liability component from the fair value
of the entire instrument. The resulting value, less
income tax effects, is recognised as part of equity,
and is not subsequently valued.
109Deutsche Industrie REIT-AG Notes
1.5.10. Other provisionsA provision is recognised when the Company has a
present legal or constructive obligation because of a
past event, the outflow of economic benefits to settle
the obligation is probable and a reliable estimate of
the amount of the obligation, despite uncertainties
regarding the amount or the temporal use, is possible.
Other provisions are measured at the amount that
would reasonably have to be paid to settle the obliga-
tion at the balance sheet date or when the obligation
was transferred to a third party at the time of the
transfer. Risks and uncertainties are considered by
applying appropriate estimation methods, including
probabilities of occurrence. Long-term provisions
with a remaining term of more than one year are
discounted if the interest effect is material.
1.5.11. Income recognitionAccording to IFRS 15, the amount of revenue corre-
sponds to the consideration to which the company is
contractually entitled. Revenue is recognised when
control over an asset or service is transferred to the
customer. The five-step model is used to determine
the amount and timing of revenue recognition:
• Identification of contracts with customers
• Identification of separate service obligations
• Determination of the transaction price
• Allocation of the transaction price to separate
service obligations
• Recognition of revenue upon fulfilment of
individual service obligations
According to IFRS 15, a contract is an agreement
between two or more parties that creates legally
enforceable rights and obligations. The contract may
be in writing, verbal or implied based on the entity’s
ordinary activities. In certain circumstances, several
contracts must be combined.
The second step is to identify the individual perfor-
mance obligations. A commitment always constitutes
a performance obligation if the good or service is
distinguishable. In principle, a contract contains a
performance obligation, so that the fourth step, the
allocation of the transaction price to separate perfor-
mance obligations, is not necessary.
This is followed by the determination of the transac-
tion price, which represents the consideration for the
goods or services transferred. No variable components
were identified in the DIR contracts. The period
between the transfer of the goods or services to the
customer does not usually exceed one year, so that
the promised consideration does not need to be
adjusted to the time value of money.
The fourth step is to allocate the transaction price to
the identified service commitments based on their
relative individual sale prices. The individual sale
price is the price at which the company has sold the
good or service individually to comparable customers
in similar circumstances.
The warranties and guarantees contained in the
contractual relationships do not constitute separate
performance obligations, as they only assure the
customer that the goods delivered, or services
provided meet the contractually agreed specifications.
Furthermore, there are no take-back, reimbursement
or similar obligations.
In accordance with IFRS 15, sales revenues are
recognised either on a time or date basis, depending
on when the performance obligation is fulfilled, or
the power of disposal is transferred to the customer.
The company concludes rental agreements, which
essentially comprise net cold rent and operating
costs. As a lease, the contractual component of net
cold rent does not fall within the scope of IFRS 15
and is recognised as revenue on a straight-line basis
over the term of the lease. The transaction price is
110Deutsche Industrie REIT-AG Annual report 2019/2020
therefore agreed in the lease agreements and does
not contain any variable components or financing
components. The rental payments are to be made
monthly.
Proceeds from the sale of properties are recognised
in the income statement at the time when control
is transferred to the buyer. This is generally done by
means of a change in the burden of benefits. Income
from the sale of properties held for sale (IFRS 5-Prop-
erties) is recognised as revenue. The consideration is
due upon transfer of the property.
According to IFRS 15, the distinction between
principle and agent status is based on whether a
contracting party has control over the service before
transferring it to a customer. The indicators for this
assessment, which must be considered in their
entirety and not cumulatively, are the primary
responsibility for the performance, the potential
inventory risk of not being able to pass on costs
and the pricing power for a service.
Deutsche Industrie REIT AG acts as the principle for
the operating costs of the rental agreement based on
the regulations of IFRS 15, as the company acquires
the power of disposal over the goods and services and
is thus under an obligation to perform towards the
tenant.
Services that are invoiced as operating and ancillary
costs according to the principal method are shown in
the income statement without being netted against
the corresponding revenues. Revenue is recognised
when the service is rendered. Services rendered by
third parties and charged to third parties are reported
under revenues from rentals.
In accordance with IFRS 15, land taxes and building
insurance do not represent separately identifiable
service obligations that confer a definable benefit
to the tenant. For these contract components, the
agreed consideration is allocated to the other identi-
fied contract components based on their relative
individual selling prices.
According to IFRS 15, a contractual liability must be
recognised if the customer has fulfilled its contractual
obligation before DIR has transferred control of the
good or service. Due to the business model and the
underlying terms of payment of the DIR, customers
pay the consideration in the same time frame as the
Company fulfils its contractual obligation, so that no
contractual liability is recognised. The unconditional
claim of Deutsche Industrie to the consideration to be
paid is reported as a receivable.
In addition, no contractual assets are balanced, as DIR
does not transfer goods or services to the customer
before receiving the consideration.
1.5.12. Leasing
The new standard IFRS 16 leaves the accounting
for lessors largely unaffected, but brings significant
changes for lessees with operating leases, as the lessee
no longer needs to classify the lease as an operating
or finance lease. There are no material effects for
finance leases.
Leases are balanced as rights of use and correspond-
ing liabilities at the time when the leased asset is
available for use by the Company. Lease instalments
are divided into repayment and financing expenses.
Finance charges are recognised in the income state-
ment over the lease term using the effective interest
method, so that for each period the periodic interest
rate on the remaining balance of the liability is
constant. The right of use is amortised on a straight-
line basis over the shorter of the useful life of the
111Deutsche Industrie REIT-AG Notes
asset and the lease term. When determining the term
of the lease, extension options are considered, the
exercise of which is reasonably certain.
Assets and liabilities under leases are initially recog-
nised at their present values. The lease liability
comprises the present value of fixed lease payments,
variable lease payments linked to an index or interest
rate, expected residual value payments, the exercise
price of a sufficiently certain purchase option and
penalties for the sufficiently certain termination of
the lease. The right of use is measured at cost, which
comprises the amount of the initial measurement of
the lease liability, all lease payments made on and
before the lease is made available, initial direct costs
and estimated costs of dismantling or removing the
leased asset.
The right of use is reported under the balance sheet
item in which the underlying asset would also be
balanced. The lease liability is included in other
non-current or current financial liabilities.
Payments for short-term leases or leases for low-value
assets are recognised as expenses in the statement of
comprehensive income on a straight-line basis.
Deutsche Industrie has no such leases.
Lease payments are discounted at the lessee’s incre-
mental borrowing rate if the implicit interest rate
underlying the lease cannot be determined. The
incremental borrowing rate is the interest rate that
the lessee would have to pay if it had to acquire or
finance the underlying asset with external funds in
similar circumstances.
The company acts as a lessee of ground lease con-
tracts and a motor vehicle. For the leaseholds previ-
ously balanced as finance leases under IAS 17, the
carrying amount of the leased asset immediately prior
to the initial adoption of IFRS 16 is recognised under
IAS 17 and the carrying amount of the lease liability
under IAS 17 is recognised as the initial carrying
amount of the right of use and the lease liability
under IFRS 16. The measurement principles of the
new leasing standard were subsequently applied, but
did not result in any changes in measurement, as
there were no residual value guarantees, variable lease
payments or similar. The rights of use under lease-
hold contracts continue to be reported in the balance
sheet under non-current assets in the item invest-
ment property. The corresponding lease liability is
included in other current or non-current liabilities.
In addition, Deutsche Industrie also acts as lessor
for the vehicle leased by itself, as it has leased it to
Solitaire Verwaltungsgesellschaft mbH & Co. KG for
use. The monthly leasing instalments paid by DIR are
passed on in full to Solitaire, as are the (operating)
costs associated with the vehicle, so that no costs
arise for Deutsche Industrie from this.
For the first time, a right of use and a leasing liability
were balanced for the leased vehicle, as this constitut-
ed an operating lease under IAS 17. The right of use is
disclosed under property, plant, and equipment. The
corresponding lease liability is included in current or
non-current other financial liabilities. For further
information please refer to Note 2.17.
112Deutsche Industrie REIT-AG Annual report 2019/2020
2.1. Investment property
In the 2019/2020 financial year, there was a transfer
of ownership of 20 acquired investment properties.
As a result, the DIR real estate assets balanced as of
30 September 2020 comprise 69 properties with a
fair value of TEUR 564,987.0 (previous year: TEUR
391,377.0) plus leasehold properties reported as rights
of use in the amount of TEUR 20,832.7 (previous
year: TEUR 1,472.0). In addition, there were value-
enhancing measures that were capitalised in the
amount of TEUR 4,943.6 (previous year: TEUR
3,273.4). The unrealised valuation result from fair
value appraisal amounted to TEUR 36,981.7 (previous
year: TEUR 37,552.1). Part of a property was sold after
the reporting date. No cash-generating value was
attributed to the section as of the balance sheet date,
so that the fair value of the property after the sale of
the section is not reduced significantly as a result.
The buyer assigns a value to the section that inde-
pendent market participants who only acquire this
section would not pay, so that the previous fair value
attributable to this section is retained in the valuation
as of the reporting date. Accordingly, a presentation
within the financial statements in accordance with
IFRS 5 with an amount of TEUR 0 is not made
separately as a zero line.
• The development of investment properties is as follows:
In TEUR 2019/2020 2018/2019
Opening balance at 01.10. 392,849.0 168,242.2
+ Real estate purchases 131,443.3 184,565.9
+ Capitalisation of leaseholds and rights of use 19,589.9 186.8
+ Adjustment of book values for leaseholds due to changed ground rent payments
12.2 33.6
– Disposal of book value through sale of real estate 0.0 –627.0
– Reclassification in accordance with IFRS 5 0.0 –435.0
+ Subsequent acquisition and construction costs (Capex) 4,943.6 3,273.4
+ Valuation result of sold properties 0.0 57.0
+ Unrealised valuation gains or losses from fair value measurement (change in fair value)
36,981.7 37,552.1
Closing balance on the reporting date 585,819.7 392,849.0
In the year under review, investment property with
a value of TEUR 464,660.0 (previous year: TEUR
298,955.0) was pledged as collateral for financial
liabilities by way of land charges or the assignment
of rental income.
There are leasehold contracts under which the related
plots of land are developed with commercial real
estate. Rights of use and leasing liabilities are bal-
anced for the leasehold contracts. The capitalised
amount as of 30 September 2020 is TEUR 20,832.7
2. Notes to the balance sheet
113Deutsche Industrie REIT-AG Notes
(previous year: TEUR 1,472.0). As of 30 September
2020, the liability recognised amounts to 21,097.8
(previous year: TEUR 1,519.4).
• The income statement includes the following significant amounts for investment property:
Investment properties in TEUR 2019/2020 2018/2019
Gross rental income 40,781.3 25,481.2
Net gains/losses on valuation of investment properties 36,981.7 37,552.1
Net gains/losses on valuation of sold investment properties 0.0 57.0
Income from operating and ancillary costs 7,174.2 4,258.5
Operating expenses (maintenance expenses, property management, land taxes, etc.) –16,669.8 –8,789.3
Total 68,267.4 58,559.5
The operating expenses attributable to vacant
properties amount to TEUR 2,114.9 (previous year:
TEUR 1,182.5). The calculation is based on the
vacancy rate.
The valuation by an external independent appraiser is
carried out as of the valuation date of 30 June 2020
based on the valuation parameters existing at that
date. Purchased properties with transfers of owner-
ship between 1 July and 30 September are initially
recognised at cost and subsequently at the fair value
determined as of 30 June (provided that the pur-
chased properties could already be included in the
valuation). Significant fluctuations in the value of the
properties up to 30 September are considered where
there are indications that this may be the case.
As in the previous year, the fair value of the invest-
ment properties was determined based on interna-
tionally recognised valuation methods using the
discounted cash flow method.
In the discounted cash flow method, expected future
cash surpluses of a property are discounted to the
valuation date using a market-oriented, property-
specific discount rate (interest rate specific to infla-
tion and growth). While receipts regularly comprise
net rents, disbursements relate to the operating costs
to be borne by the owner. The underlying detailed
planning period is ten years. At the end of this
period, a potential discounted sale value (terminal
value) of the valuation property is forecast. This
reflects the most likely selling price less costs to sell.
The discounted net cash flows for the tenth year are
capitalised as a perpetual annuity using the capitali-
sation interest rate. The sum of the discounted cash
surpluses and the discounted potential disposal value
results in the gross capital value of the valuation
object, which, less transaction costs, gives the fair
value.
114Deutsche Industrie REIT-AG Annual report 2019/2020
• The following overview shows the key assumptions used in the discounted cash flow method:
Valuation parameters Financial year
30/09/2020 30/09/2019
Market rent increase p.a. (in %) 1.50 to 2.00 1.50 to 2.00
Maintenance costs p.a. (EUR / m²) 0.00 to 30.00 0.00 to 7.00
Administrative costs p. a. (% of market rent, previous year % of gross annual income)
0.00 to 3.00 0.00 to 4.00
Discount rate (%) 4.70 to 9.20 5.50 to 11.75
Capitalisation rate (%) 4.30 to 10.50 4.15 to 9.75
All valuation parameters correspond to level 3 of
the fair value hierarchy.
The assumptions used to value the properties were
made by the independent appraiser based on his
professional experience and are subject to uncertain-
ty. If the discount and capitalisation rate is increased
or decreased by 1.0 %, the fair value is reduced or
increased as follows:
30/09/2020 30/09/2019
Change in the discount and capitalisation rate +1 % –1 % +1 % –1 %
Fair value of investment properties (in € million) –81.6 +113.2 –15.4 +22.1
Corresponding effects result from the change in
future rental income depending on rental income,
vacancies, and administrative and maintenance costs.
As of 30 September 2020, DIR is entitled to fixed
future minimum lease payments of TEUR 188,660.6
(previous year: TEUR 149,208.5) from its rental
agreements with commercial tenants. These are
distributed as follows:
in TEUR Total Up to 1 year 1 to 5 years Over 5 years
Minimum lease payments 30.09.2020 188,660.6 36,564.8 93,202.4 58,893.3
Minimum lease payments 30/09/2019 149,208.5 29,147.8 79,119.4 40,941.3
As a rule, rental agreements for fixed minimum
periods of up to thirteen years are common. In some
cases, tenants are entitled to extension options. These
are not included here. There are no further claims to
minimum lease payments. In the case of flats in the
portfolio, there are generally rental agreements with a
statutory period of notice of three months. In some
cases, there are unlimited commercial leases with a
statutory period of notice of three months. These
result in annual rental income of TEUR 4,797.9.
The number of residential properties is immaterial.
115Deutsche Industrie REIT-AG Notes
2.2. Intangible assets
Intangible assets include capitalised expenses for
the creation of the website, which are amortised
on a straight-line basis over three years, and a
domain which is not amortised.
2.3. Property, plant, and equipment
Property, plant, and equipment includes the inven-tory of the Wildau property as well as a car and
office equipment. The useful lives are between 3
and 10 years. Depreciation is calculated using the
straight-line method.
Technical equipment
VehiclesRight of use of
vehicleOperating and office
equipmentTotal
Acquisition costs
01/10/2019
1,122.6 19.2 12.9 37.2 1,191.9
(873.1) (19.2) (0.0) (35.0) (927.3)
Accrual
0.0 0.0 0.0 129.0 129.0
(0.0) (0.0) (0.0) (2.3) (2.3)
Transfers
0.0 0.0 0.0 0.0 0.0
(249.5) (0.0) (0.0) (0.0) (249.5)
Exit
0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
30/09/20201,122.6 19.2 12.9 166.2 1,320.9
(1,122.6) (19.2) (0.0) (37.2) (1,179.0)
Accumulated amortisation
01/10/2019
111.2 6.0 0.0 9.9 127.2
(7.3) (1.2) (0.0) (4.6) (13.1)
Accrual112.3 4.8 3.0 36.3 156.4
(103.9) (4.8) (0.0) (5.3) (114.0)
Exit0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
30/09/2020223.5 10.8 3.0 46.2 283.5
(111.2) (6.0) (0.0) (9.9) (127.1)
Residual book value 30/09/2020
899.1
(1,011.4)
8.4
(13.2)
9.9
(0.0)
120.0
(27.3)
1,037.4
(1,051.9)
116Deutsche Industrie REIT-AG Annual report 2019/2020
2.4. Trade receivables
Trade receivables consist primarily of rentals and are
broken down as follows:
TEUR 30/09/2020 30/09/2019
Receivables from renting 4,532.5 1,212.8
Other accounts receivable from deliveries and services 4.7 48.8
Value adjustment on receivables –1,117.1 –445.7
Total 3,420.1 815.9
In the reporting period, the procedure for impairment
was changed so that the highest rent receivables were
considered separately and, if necessary, specific
valuation allowances were recognised, while the
remaining receivables were subject to general valua-
tion allowances depending on their due dates. The
receivables for which specific valuation allowances
were recognised were not included in the maturity
analysis. The individually considered rent receivables
of TEUR 2,474.0 resulted in an individual value
adjustment of TEUR 950.8. In addition to the impair-
ment on rent receivables, write-downs of TEUR 158.9
were recognised in the year under review.
• Impairments on trade receivables due to default risks are as follows:
Information 2019/2020 in TEURIndividual
review< 30 Days
overdue< 90 Days
overdue< 300 Days
overdue< 360 Days
overdue> 360 Days
overdueTotal
Expected loss rate 0.0 % 25.0 % 50.0 % 75.0 % 100.0 % –
Gross book value – Trade receivables
2,474.0 1,649.6 194.2 194.4 17.4 7.5 4,537.1
Value adjustment 950.8 0.0 48.6 97.2 13.0 7.5 1,117.1
• The impairments on trade receivables developed as follows:
Individual value adjustments in TEUR 2019/2020 2018/2019
As of 01/10 445.7 237.0
Consumption – –
Resolution – –
Additions 671.4 208.7
As of 30/09 1,117.1 445.7
117Deutsche Industrie REIT-AG Notes
2.5. Other non-current financial assets
Other non-current financial assets include receivables
from acquired loans in the amount of TEUR 14,595.2
(previous year: TEUR 0.0) and a guarantee in the
amount of TEUR 8,354.0 (previous year: TEUR 0.0).
In the 2019/2020 financial year, DIR invested surplus
liquidity for the first time in the acquisition of loans,
which are arranged through Fintech Creditshelf AG,
Frankfurt. The loans have terms of up to five years
and bear interest of between 5.75 % and 14.0 % p. a.
Creditshelf also charges a fee for credit processing and
related services.
The receivable from the Creditshelf loans is measured
at fair value on level three of the measurement
hierarchy without affecting income. This is based on
the invested amount less repayments to date, consid-
ering expected default rates.
• The development of the Creditshelf loans in the reporting period is shown below:
TEUR 2019/ 2020
Opening balance at 01/10 0.0
Acquisition of new loans 48,955.5
Amortisation –15,125.5
Sale –1,992.7
Change in fair value in other comprehensive income –1,733.8
Offsetting accrued interest –15.2
Accrued interest and charges 441.3
Closing balance on the reporting date 30,529.6
During the reporting period, impairment losses of
TEUR 1,733.8 were recognised in the income state-
ment on the Creditshelf loans.
• The impairment on Creditshelf loans developed as follows in the reporting period:
TEUR 30/09/2020
As of 01/10 0.0
Consumption –
Resolution –
Additions 1,733.8
As of 30/09 1,733.8
DIR acquired loans from Creditshelf for the first time
in the year under review. The impairment was deter-
mined based on the expected 12-month credit loss.
No impairment losses were recognised on other
financial assets.
118Deutsche Industrie REIT-AG Annual report 2019/2020
2.6. Non-current derivative financial instruments
Deutsche Industrie uses interest rate swaps to hedge
interest rate risks on loans with variable interest rates.
These were recognised at the balance sheet date at
their fair value, which corresponds to the present
value of the swaps, resulting in financial assets of
TEUR 491.4 (previous year: TEUR 0.0). For further
information please refer to section 1.5.5 and
section 5.1.3.
2.7. Other non-current and current assets
Other non-current assets exclusively include pre-
payments of TEUR 7,474.1 (previous year: TEUR
38,886.2) made on investment properties acquired
for which the transfer of ownership had not yet taken
place by the reporting date. They are allocated to
non-current assets, as they belong to the non-current
balance sheet item Investment Properties.
• Other current assets are comprised as follows:
TEUR 30/09/2020 30/09/2019
Receivables from shareholder loans 71,994.1 0.0
Short-term investment in acquired loan parts via Creditshelf including receivables from affiliated companies included therein
15,934.4 0.0
Interest receivables from shareholder loans 3,020.0 0.0
Tenant deposits 1,358.5 679.9
VAT receivables 1,198.9 514.2
Receivables from purchaser settlements 103.8 328.0
Unfinished services after offsetting against advance payments received 70.4 619.2
Receivables from affiliated companies 0.0 17.0
Trust accounts 0.0 459.0
Other 938.2 266.4
Total 94,618.3 2,883.7
2.8. Liquid funds
Cash and cash equivalents include cash in hand and
bank balances. Deposit balances are reported under
other current assets.
The cash flow statement includes bank balances and
cash on hand, considering current account liabilities.
In this respect, cash and cash equivalents in the cash
flow statement may differ from those disclosed in the
balance sheet.
119Deutsche Industrie REIT-AG Notes
2.9. Equity
2.9.1. Subscribed CapitalThe fully paid-up share capital of DIR on 30 Septem-
ber 2020 amounts to TEUR 32,079.5 (previous year:
TEUR 23,451.9) and is divided into 32,079,505 no-par
value bearer shares with equal voting rights, each
with a par value of EUR 1.00.
Based on the authorisation granted by the Annual
General Meeting on 22 March 2019 (Authorised
Capital 2019/I), the share capital was increased by
EUR 5,711,242.0 by issuing new no-par value bearer
shares, each with a notional value of EUR 1.00 of
the share capital of EUR 23,451,945.0 to EUR
29,163,187.0, in accordance with the resolution
passed by the Supervisory Board on 30 October 2019.
The shares were placed at a price of EUR 16.25, which
generated gross proceeds of around EUR 92.8 million.
In addition, because of the authorisation granted
by the Annual General Meeting on 6 March 2020
(Authorised Capital 2020/1), the share capital was
increased on 19 June 2020 by EUR 2,916,318.0 from
EUR 29,163,187.0 to EUR 32,079,505.0. For this
purpose, 2,916,318 new no-par value bearer shares
were issued, each representing EUR 1.00 of the share
capital. The placement took place at an issue price of
EUR 20.00 per share, resulting in gross issue proceeds
of around EUR 58.3 million.
Powers of the Management Board to issue new shares
Authorised capital
Authorised Capital 2019/I was cancelled in the
reporting period and replaced by Authorised Capital
2020/1.
New Authorised Capital 2020/1 was resolved at the
Annual General Meeting on 6 March 2020. This
authorised the Management Board to increase the
share capital by up to EUR 14,581,593.00 until
5 March 2025. The Authorised Capital 2020/I as of
30 September 2020 amounts to EUR 11,665,275.00.
Conditional capital
The Management Board was authorised by the
Annual General Meeting on 6 March 2020 to increase
the share capital of the company on a contingent
basis by up to EUR 14,581,593.00 to service option
or convertible bonds (Contingent Capital 2020/I).
The contingent capital 2019/I was cancelled in the
reporting period.
2.9.2. Capital reserveThe capital reserve increased by TEUR 140,463.4 from
TEUR 89,530.2 at the beginning of the financial year
to TEUR 229,993.6 at the end of the financial year.
The change includes the increase from the cash
capital increases in November 2019 and June 2020.
2.9.3. Other reservesRetained earnings of TEUR 50.0 have not changed
2.9.4. Retained profitThe development of this item is shown in the
statement of changes in equity.
A dividend of TEUR 4,666.1 was paid for the
2018/2019 financial year, which corresponds to a
dividend of EUR 0.16 per share.
120Deutsche Industrie REIT-AG Annual report 2019/2020
2.10. Liabilities to banks
• Liabilities to banks are as follows:
TEUR 30/09/2020 30/09/2019
Non-current 134,664.2 67,526.5
Current 7,820.7 3,956.9
Total 142,484.9 71,483.4
Of which secured 132,484.9 71,483.4
Liabilities to banks have increased significantly due to
the raising of new secured bank loans, which are
being used to build up the property portfolio. This
was offset by current repayments.
The repayment rates are generally between 5.0 % and
9.05 % p. a. The liabilities to banks are fully collateral-
ised. The collateral provided was almost exclusively
real estate liens in connection with the assignment of
rent and lease receivables and, in one case, guarantees
from related parties. These securities can only be
realised by the banks after a material breach of the
financing agreement (for example, in the event of a
breach of financial covenants).
2.11. Liabilities from corporate bonds
• The liabilities from bonds, considering the issue costs, are composed as follows:
Liabilities from corporate bonds in TEUR Maturity 30/09/2020 30/09/2019
long term short term long term short term
Bond TEUR 118,000.0 (secured), 4.0 % Coupon p. a. 30 August 2022 118,065.2 0.0 117,904.0 0.0
Total 118,065.2 0.0 117,904.0 0.0
In August 2017, the Company issued a secured bond
with a volume of EUR 60,000,000.00, divided into
600 bearers, secured partial debentures with equal
rights and a nominal value of EUR 100,000.00 each.
In the 2017/2018 financial year, the bond was
increased by a total of TEUR 29,900. The nominal
amount on 30 September 2018 was TEUR 89,900.
On 22 February 2019, the bond was increased once
again by TEUR 28,100, so that the nominal amount
now stands at TEUR 118,000, divided into 1,180
partial debentures. The bond bears interest at 4.0 %
p. a. and has a term until 30 August 2022. Interest
is paid annually on 30 August.
121Deutsche Industrie REIT-AG Notes
2.12. Liabilities from convertible bonds
• The liabilities from convertible bonds are composed as follows, considering the issue costs, and are classified as long-term:
Liabilities from convertible bonds in TEUR Maturity 30/09/2020 30/09/2019
long term short term long term short term
Convertible bond TEUR 41,600.0 (nominal), 2.0 % Coupon p. a. 11 June 2023 49,088.0 0.0 41,184.0 0.0
Total 49,088.0 0.0 41,184.0 0.0
On 11 June 2019, Deutsche Industrie issued a con-
vertible bond with 416 partial debentures with a
nominal value of EUR 100,000.00 each. The nominal
amount of the bearer bonds is TEUR 41,600.0. The
convertible bonds bear interest at 2.0 % p. a. and
mature on 11 June 2026. There is a put option which
provides for maturity on 11 June 2023. The bond
debtor must repay a bond after the creditor has
exercised the corresponding option on 11 June 2023
(the “option repayment date (put)”) at 105 % of the
nominal amount plus any interest accrued up to the
option repayment date (put) (exclusively). As the con-
tract term until 11 June 2026 is only an extension
option in economic terms, 11 June 2023 was taken as
the due date. The initial conversion price for no-par
value bearer shares in the Company was EUR 18.50
per share. The conversion price has been adjusted
due to the dividend of EUR 0.16 per dividend-bearing
share paid on 11 March 2020 and now amounts
to EUR 18,3570. Following the adjustment of the
conversion price, the convertible bonds are conver-
tible into 2,266,165 new or existing no-par value
Deutsche Industrie bearer shares or can be redeemed
in cash.
The non-current financial liability resulting from the
issue of the convertible bond is shown in the balance
sheet under convertible bonds.
Change of control clauses contained in the conver-
tible bonds could not be exercised in the reporting
year.
• The effects of changes in the default risk of the liability from convertible bonds are as follows:
TEUR 2019/2020 2018/2019
Book value at 30/09 49,088.0 41,184.0
Of which change in fair value due to credit risk recognised directly in equity 0.0 0.0
Cumulative change in fair value due to credit risk 0.0 0.0
Amount which DIR is contractually obliged to pay to the holders of the convertible bond at Maturity 43,680.0 43,680.0
Difference between book value and amount to be paid for Maturity –5,408.0 2,496.0
This resulted in a valuation loss of TEUR 7,904.0
(previous year: TEUR 832.0), which was recognised in
profit or loss in the valuation result for financial
liabilities.
122Deutsche Industrie REIT-AG Annual report 2019/2020
2.13. Liabilities to other lenders
Liabilities to other lenders result from loans from
Obotritia Capital KGaA and related parties with an
agreed maximum basic term, which are subject to
variable and constant repayment. Only interest is
incurred on outstanding amounts.
There were no liabilities to Obotritia Capital KGaA at
the balance sheet date (previous year: TEUR
20,177.8).
2.14. Other provisions
• The other provisions are made up as follows:
Other provisions in TEUR As of
01/10/2019Consumption Release Addition
As of 30/09/2020
Archiving 3.0 0.0 0.0 0.0 3.0
Legal, consultancy and auditing costs 180.5 172.7 7.8 165.0 165.0
Outstanding invoices 413.3 413.3 0.0 810.9 810.9
Other provisions 400.2 206.9 0.0 373.6 566.9
Total 997.0 792.9 7.8 1,349.5 1,545.8
As the main provisions are utilised in the short term,
no discounting is applied for reasons of materiality.
In addition, there are no significant uncertainties
regarding the timing or amount of utilisation.
2.15. Other non-current and current liabilities
Other non-current liabilities include lease obligations
for leasehold rights for which DIR is the leaseholder
and which are accounted for as finance leases. The
corresponding assets are reported as investment
properties.
123Deutsche Industrie REIT-AG Notes
• The development of other non-current and current liabilities is as follows:
TEUR 30/09/2020 30/09/2019
Liabilities from finance leases 21,060.0 1,516.7
Other non-current liabilities 52.4 10.4
Total other non-current liabilities 21,112.4 1,527.1
Advance payments received from acquired loans 632.8 0.0
Tenant deposits 1,425.5 729.2
Liabilities to tenants 1,845.4 469.6
Current liabilities from finance leases 47.6 2.6
Off-period incoming payment 95.8 300.8
Trust accounts 212.5 0.0
Other 49.2 58.5
Total other current liabilities 4,308.8 1,560.7
Tax liabilities 0.0 0.0
Total 25,421.2 3,087.8
As part of the initial adoption of IFRS 16, Deutsche
Industrie, as a lessee, balances rights of use and lease
liabilities for leases. The company acts as a lessee of
leasehold contracts, which, however, were already
reported under IAS 17 on the assets and liabilities side
of the balance sheet under investment properties and
other current and non-current liabilities. The applica-
tion of IFRS 16 did not result in any changes in
valuation.
2.16. Trade payables
Trade payables totalled TEUR 2,043.6 (previous year:
TEUR 2,692.0) as of the balance sheet date, and
primarily include TEUR 856.4 (previous year: TEUR
37.9) in liabilities from property management and
TEUR 529.4 (previous year: TEUR 2,548.0) in land
transfer tax liabilities for property additions.
2.17. Leasing
As part of the initial adoption of IFRS 16, Deutsche
Industrie, as a lessee, balances rights of use and lease
liabilities for leases. The company acts as a lessee of
leasehold contracts, which, however, were already
reported under IAS 17 on the assets and liabilities side
of the balance sheet under investment properties and
other current and non-current liabilities. The applica-
tion of IFRS 16 did not result in any changes in
valuation.
The company also leases a motor vehicle, for which a
right of use and a leasing liability are now recognised.
124Deutsche Industrie REIT-AG Annual report 2019/2020
The retrospective application of IFRS 16 using the
exemption option in IFRS 16.C8(b)(i) did not result
in a first-time adoption effect to be recognised in
retained earnings. A right of use of TEUR 12.9 and
a lease liability of the same amount were recognised.
The transition effects result from the recognition of
the leased vehicle in the balance sheet and are as
follows at the date of initial application:
TEUR 30/09/2019 IFRS 16 initial adoption 01/10/2019
Non-current assets 432,788.9 12.9 432,801.8
-of which property, plant, and equipment 1,051.9 12.9 1,064.8
Total assets 438,989.1 12.9 439,002.0
Equity 181,463.2 0.0 181,463.2
Non-current liabilities 228,144.6 12.9 228,157.5
-of which other non-current liabilities 1,527.1 12.9 1,540.0
Total equity and liabilities 438,989.1 12.9 439,002.0
• The reconciliation to the opening balance sheet value of the lease liability on 1 October 2019 is as follows:
TEUR 2019/2020
Liabilities from short-term leases at 30/09/2019 2.6
Minimum lease payments (nominal value) of long-term finance lease liabilities at 30/09/2019 1,516.7
Leasing liabilities at 30/09/2019 1,519.3
IFRS 16 – First-time application effect on lease liabilities 12.9
Leasing liabilities at 01/10/2019 1,532.2
• The capitalised rights of use relate to the following classes of assets:
TEUR 30/09/2020 01/10/2019
Plant, operating and office equipment 9.9 12.9
Investment properties 20,832.7 1,472.0
Total rights of use 20,842.6 1,484.9
125Deutsche Industrie REIT-AG Notes
• Leasing liabilities are broken down as follows as of the reporting date:
TEUR 30/09/2020 01/10/2019
Non-current lease liabilities 21,060.0 1,529.6
Current lease liabilities 47.6 2.6
Total leasing liabilities 21,107.6 1,532.2
In the statement of comprehensive income, addition-
al depreciation resulted from the amortisation of the
right to use assets previously balanced as operating
leases and additional interest expenses from the
compounding of the lease liability. Depreciation of
TEUR 3.0 is attributable to rights of use, while interest
expenses from compounding leasing liabilities
amount to TEUR 0.2.
2.18. Taxes and deferred taxes
DIR has had REIT status since 1 January 2018 and is
therefore exempt from corporation and trade tax.
Compliance with the criteria of the REIT Act is
decisive for the tax exemption.
If the REIT criteria are met, existing temporary
differences between IFRS and the tax balance sheet
will not have any tax implications in future because
of the income tax exemption. This results in a
deferred tax result of TEUR 0.0 (previous year:
TEUR 0.0).
PICTURE:Remscheid, Rosentalstraße
126Deutsche Industrie REIT-AG Annual report 2019/2020
3. Notes to the statement of comprehensive income
3.1. Net rental income
• The rental income is made up of revenues from gross rental income and revenues from operating and ancillary costs, less operating expenses, and is as follows:
TEUR 2019/2020 2018/2019
Gross rental income 40,781.3 25,481.2
Revenues from operating and ancillary costs 7,174.2 4,258.5
Rental revenues 47,955.5 29,739.7
Maintenance 2,803.8 2,195.2
Recoverable operating and ancillary costs 9,211.5 3,755.3
Non-recoverable operating costs 4,654.5 2,838.8
- Thereof advertising costs 3,106.0 1,762.6
- Thereof administrative costs 1,180.9 817.4
- Thereof legal and consulting fees 52.5 19.6
- thereof vacancy costs 23.7 -58.7
- thereof other costs 291.4 297.9
Total operating expenses 16,669.8 8,789.3
Net rental income 31,285.7 20,950.4
Revenue relates almost exclusively to commercial
rentals from properties in Germany. The income from
operating and ancillary costs does not include any
own work performed by the company. Maintenance
expenses relate to repairs and maintenance work. In
2019/2020, value-enhancing maintenance measures
in the amount of TEUR 4,943.6 (previous year: TEUR
3,273.4) were capitalised.
Operating and incidental costs include sales revenues
of TEUR 4,392.0 (previous year: TEUR 3,587.3) in
accordance with IFRS 15.
3.2. Net proceeds from the sale of investment properties
In the 2019/2020 financial year, a partial sale of the
Wuppertal property took place, which was reported
under investment properties held for sale in accord-
ance with IFRS 5. The selling price amounted to TEUR
435.0 and a valuation result of TEUR 22.9 was
achieved for this property.
127Deutsche Industrie REIT-AG Notes
3.3. Other Company income
Other operating income amounted to TEUR 175.6
(previous year: TEUR 373.7) in the financial year
under review and primarily includes income from
insurance compensation amounting to TEUR 159.6
(previous year: TEUR 340.5).
3.4. Result from the revaluation of investment properties
The valuation result includes the net valuation
gains and losses from the fair value measurement
of investment properties by an external and inde-
pendent appraiser as of the balance sheet date. If sales
contracts exist, the sales price agreed therein was used
as the fair value at level 1 of the valuation hierarchy,
as this represents a better approximation of the
market value.
3.5. Personnel expenses
The company’s personnel expenses amounted to
TEUR 854.2 in the 2019/2020 financial year (previous
year: TEUR 808.3). Further services for the company
are provided by employees of Obotritia KGaA. A cost
allocation is charged for these services, which is
recognised under other operating expenses.
The increase in personnel expenses results from the
hiring of new employees to reflect the growth of the
company. Of the personnel expenses, TEUR 56.0
(previous year: TEUR 33.8) relate to social security
contributions and pension expenses.
Nine people (previous year: four) were directly
employed by the company at the balance sheet date.
This included two members of the Board of Manage-
ment, five salaried employees and two interns.
3.6. Impairment loss of inventories and receivables
• The impairments break down as follows:
Impairment loss in TEUR 2019/2020 2018/2019
Impairment of rent receivables 671.4 208.6
Write-down of rent receivables 158.9 0.0
Impairment on loans acquired 1,733.8 0.0
Total 2,564.1 208.6
During the reporting period, impairments of TEUR
1,733.8 were recognised in the income statement on
the Creditshelf loans.
For further information, see also section 2.4 Trade
receivables, section 2.5 Other non-current financial
assets and section 2.7 Other non-current and current
assets.
128Deutsche Industrie REIT-AG Annual report 2019/2020
3.7. Other administrative expenses
• The other administrative expenses are as follows:
TEUR 2019/2020 2018/2019
Legal, consultancy and auditing costs 678.4 362.4
Agency fees 507.4 471.9
Charges 769.9 262.7
Compensation 166.4 0.0
Appointment of mortgages 140.3 272.2
Remuneration of the Supervisory Board 27.5 28.1
Others 288.4 195.7
Total 2,578.2 1,592.9
thereof one-off expenses 619.9 431.2
Adjusted 1,958.3 1,161.7
Legal and consulting expenses primarily comprise the
ongoing costs of external accounting and auditing
fees and legal advice. Miscellaneous other operating
expenses primarily include costs arising from the
preparation of appraisals. Non-recurring expenses in
the reporting period primarily comprise expenses for
consulting costs in connection with a special project
and costs for real estate liens. Adjusted for special
effects and non-recurring expenses, other operating
expenses rose by TEUR 796.6.
129Deutsche Industrie REIT-AG Notes
3.8. Finance result
• The financial result has the following structure:
TEUR 2019/2020 2018/2019
Valuation result of financial liabilities –7,904.0 –832.0
Total valuation result –7,904.0 –832.0
Interest income from shareholder loans 3,020.0 98.6
Interest income from Creditshelf loans 2,453.2 0.0
Other interest income 0.0 0.0
Total interest income 5,473.2 98.6
Interest on corporate bonds –4,881.2 –4,400.0
Other interest expenses for loans to banks –2,235.7 –877.3
Interest on convertible bonds –832.0 –208.0
Interest expense from shareholder loans –198.3 –1,064.2
Capital raising fees for liabilities measured at fair value 0.0 –161.3
Total interest expenses –8,147.2 –6,710.8
Interest expense Leasing (ground rents) –890.0 –113.9
Financial results –11,468.0 –7,558.1
thereof non-cash –3,718.3 –1,740.6
Of the interest income, TEUR 5,473.2 is attributable
to financial instruments that are balanced using the
effective interest method.
The valuation of financial liabilities in the amount
of TEUR 7,904.0 (previous year: TEUR 832.0) results
from the measurement of the convertible bond at fair
value.
The increased interest result in the reporting period
is due to interest income from acquired loans via
Creditshelf and from loans issued to Obotritia
Capital. For further information, please refer to
section 6.3.
3.9. Other taxes
Other taxes in the reporting period amount to TEUR
0.2 (previous year: TEUR 0.0) and are exclusively
vehicle taxes. The property tax payable on invest-
ment properties is reported under rental expenses.
130Deutsche Industrie REIT-AG Annual report 2019/2020
3.10. Earnings per share
• Earnings per share are as follows:
TEUR 2019/2020 2018/2019
Net income for the period (undiluted) 50,820.5 48,671.9
Interest expense on convertible bonds 832.0 208.0
Valuation result financial liabilities 7,904.0 832.0
Net income for the period (diluted) 59,556.5 49,711.9
Average number of shares issued in the reporting period (undiluted) 29,297,634 21,619,034
Potential weighted conversion shares 2,258,412 2,248,480
Average number of shares issued in the reporting period (diluted) 31,556,046 23,867,514
Earnings per share (EUR)
Undiluted 1.73 2.25
Diluted 1.73 2.08
The previous year’s figures have been extended to
include the valuation result of financial liabilities and
thus the diluted earnings per share for the previous
year have been adjusted. In the current financial year,
the conversion has no dilutive effect. Diluted earn-
ings per share are the same as undiluted earnings per
share.
132Deutsche Industrie REIT-AG Annual report 2019/2020
The cash flow statement was prepared using the
indirect method for the operating part. A distinction
was made between operating, investing, and financ-
ing activities. The cash and cash equivalents reported
as of the balance sheet date include all credit balances
and current account liabilities due within three
months of the balance sheet date. The cash flow
statement shows how cash and cash equivalents
changed in the course of the financial year as a result
of cash inflows and outflows. In accordance with
DRS 21 / IAS 7 (“Cash Flow Statements”), a distinc-
tion is made between cash flows from operating
activities and cash flows from investing and financing
activities.
Cash flow from operating activities amounted to
TEUR 17,661.9 in the financial year (previous year:
TEUR 17,133.0). The positive cash flow from operat-
ing activities is directly related to the increase in the
portfolio of rental properties, which will continue to
improve in the coming years.
The cash flow from investing activities in the report-
ing year was TEUR - 225,398.3 (previous year: TEUR
- 198,002.9). The main investing activities of the
company in the reporting year include payments for
the various property acquisitions amounting to TEUR
- 104,973.7 (previous year: TEUR - 215,529.4) as well
as payments within the framework of short-term
financial management amounting to TEUR -
140,306.4 (previous year: TEUR 0.0).
Cash flow from financing activities amounted to
TEUR 205,705.9 in the reporting year (previous year:
TEUR 182,818.4). The main factors in the reporting
year were payments received from capital increases
of TEUR 149,091.0 (previous year: TEUR 63,005.3)
and payments received from loans taken out with
various banks totalling TEUR 77,620.0 (previous year:
TEUR 61,875.0). These inflows were mainly offset
by outflows for the repayment of loans including
interest payments totalling TEUR - 15,211.1 (previous
year: TEUR 8,184.1) and dividends paid to sharehold-
ers totalling TEUR - 4,666.1 (previous year: TEUR -
2,025.0).
4. Notes to the cash flow statement
133Deutsche Industrie REIT-AG Notes
• The opening balance of net financial liabilities as of 01 October 2019 can be reconciled to the closing balance as of 30 September 2020 as follows:
TEUR Liabilities to banksLiabilities from
convertible bondsLiabilities from
corporate bondsTotal
As of 01/10/2018 11,913.3 0.0 89,686.2 101,599.5
Inflows from the issue of corporate bonds 0.0 0.0 28,100.0 28,100.0
Costs from the issue of corporate bonds 0.0 0.0 –101.1 –101.1
Cash inflow from issuing corporate bonds 0.0 40,352.0 0.0 40,352.0
Costs related to issuing corporate bonds 0.0 0.0 0.0 0.0
Cash inflow from loans 61,875.0 0.0 0.0 61,875.0
Costs related to the issuance of loans –42.5 0.0 0.0 –42.5
Amortisation of loans –2,268.0 0.0 0.0 –2,268.0
Valuation result of financial liabilities 0.0 832.0 0.0 832.0
Interest expenses 877.3 208.0 4,400.0 5,485.3
Interest paid –871.7 –208.0 –4,181.1 –5,260.8
As of 30/09/2019 71,483.4 41,184.0 117,904.0 230,571.4
As of 01/10/2019 71,483.4 41,184.0 117,904,0. 230,571.4
Inflows from the issue of corporate bonds 0.0 0.0 0.0 0.0
Costs from the issue of corporate bonds 0.0 0.0 0.0 0.0
Inflows from the issue of convertible bonds 0.0 0.0 0.0 0.0
Costs from the issue of convertible bonds 0.0 0.0 0.0 0.0
Inflows from the take-up of loans 77,620.0 0.0 0.0 77,620.0
Costs from the take-up of loans –214.4 0.0 0.0 –214.4
Outflow for the amortisation of financial liabilities –6,448.3 0.0 0.0 –6,448.3
Valuation result of financial liabilities 0.0 7,904.0 0.0 7,904.0
Interest expenses 2,235.7 832.0 4,881.2 7,948.9
Interest paid –2,191.5 –832.0 –4,720.0 –7,743.5
As of 30/09/2020 142,484.9 49,088.0 118,065.2 309,638.1
134Deutsche Industrie REIT-AG Annual report 2019/2020
5.1. Financial risk management
DIR’s business exposes it to various financial risks.
These risks mainly include default, liquidity, and
market risk (interest rate risk). Accordingly, there is
a policy-based risk management system, which is
managed by the Corporate Finance department.
The scope of the financial policy is determined by
the Management Board and monitored by the
Super visory Board.
5.1.1. Default risksDefault risk is defined as the risk of a loss if a business
partner fails to meet its contractual payment obliga-
tions. These can essentially be tenants or banks.
To counter this risk, DIR only enters into business
relationships with creditworthy contracting parties
and obtains appropriate collateral. For this purpose,
the DIR uses available financial information to assess
the creditworthiness of the business partners. The
company’s risk exposure is continuously monitored.
The company generally records value adjustments
for expected defaults:
• Financial assets measured at amortized cost
• Debt instruments measured at fair value through
equity
• and contract assets as well as receivables from
leases.
The Company measures the allowance for doubtful
accounts by the amount of the expected losses over
the lease term, except in the following cases where
the expected twelve-month credit loss is used:
• Debt instruments that do not have an impaired
credit rating as at the balance sheet date, and
• Debt instruments for which the default risk
has not increased significantly since initial
recognition.
Value adjustments on trade receivables and contract
assets as well as receivables from leases are generally
considered based on expected credit losses over the
term of the lease.
To determine whether there has been a significant
increase in default risk since initial recognition and to
estimate the expected default, appropriate and robust
information that is available without unreasonable
time and cost is used. This includes both quantitative
and qualitative information and analyses based on
experience and forward-looking information. The
transfer from Level 1 of the impairment model
according to IFRS 9 takes place if the credit default
risk has increased significantly since initial recogni-
tion. The indicator for this is primarily that the
contractual payments are more than 30 days overdue
or the rating has deteriorated. A retransfer takes place
if the credit default risk on the reporting date has
decreased to such an extent that it is no longer
significantly increased compared to the initial
recognition. This applies regardless of the extent
of the change in the credit default risk in relation
to the previous reporting date.
The expected defaults are generally based on the
difference between all contractual payments owed
and all expected payments.
5. Disclosures on financial instruments and fair value
135Deutsche Industrie REIT-AG Notes
On each reporting date, a review is conducted to
determine whether financial assets carried at amor-
tised cost and debt instruments recognised at fair
value through other comprehensive income have an
impaired credit rating and, if so, whether their value
needs to be adjusted. The credit quality of a financial
asset is impaired if one or more events with an ad-
verse effect on the expected future cash flows have
occurred. Indicators include:
• Significant financial difficulties of the borrower
• A breach of contract such as default or overdue
payment
• It is likely that the borrower will go into insolven-
cy or restructuring proceedings
• makes concessions to the borrower for economic
or legal reasons related to the borrower’s financial
difficulties, which would not otherwise be
considered.
Existing rent receivables are reported in trade recei-
vables and regularly reviewed for impairment. For
measuring expected credit losses, rent receivables
have been aggregated in trade receivables based on
common credit risk characteristics and days past due.
Impairments are generally carried out based on the
age structure of the rent receivables, except for the
highest rent receivables, which are considered indi-
vidually and impaired if necessary. The expected loss
rates are based on payment profiles of past sales and
correspond to the historical defaults. An adjustment
to these historical loss rates is made using current
and forward-looking information on macro economic
factors, thereby reflecting the ability of customers
to pay the receivables. Impairment losses on trade
receivables are included in impairment losses on
receivables and inventories. The impairments are
deducted from the financial asset.
Existing loan receivables are tested for impairment
and any significant increase in value based on their
expected probability of default. The underlying
probability of default of the acquired loans is based
on regular credit analyses of the service provider
Creditshelf including the rating carried out there.
Impairment losses on financial assets measured at
fair value through other comprehensive income do
not reduce the carrying amount of the asset but are
recognised in other comprehensive income in the
same way as changes in fair value.
Financial assets are derecognised after an appropriate
assessment if they are no longer expected to be
realisable. For individual assets, the impairment
requirement provides for derecognition if they are
more than 360 days past due.
The financial assets recognised in the financial
statements less any impairments represent the
maximum default risk of the company. Collateral
received is not considered. Apart from the receivables
that are up to 30 days overdue, there are no other
receivables that have not been impaired. See also
chapter 2.4 Receivables from deliveries and services.
136Deutsche Industrie REIT-AG Annual report 2019/2020
5.1.2. Liquidity and financing riskLiquidity risk is the risk that DIR will not be able to
meet its payment obligations at a contractually
agreed time.
To ensure liquidity, liquidity planning is carried out,
which continuously compares the expected liquidity
needs with the expected liquidity inflows. In doing
so, DIR manages liquidity risks by maintaining
adequate reserves and credit lines as well as through
ongoing target/actual comparisons of projected and
actual cash flows, considering the maturity profiles
of receivables and liabilities.
• The following tables show the contractual and undiscounted disbursements of the liabilities recognised in the balance sheet by residual maturity including accrued interest:
Remaining maturities as at 30/09/2020 in TEUR Total up to 1 year 1 to 5 years over 5 years
Liabilities to banks 142,710.0 7,831.8 52,166.8 82,711.4
(71,538.4) (3,970.0) (21,093.5) (46,474.9)
Liabilities to other creditors1 0.0 0.0 0.0 0.0
(20,177.7) (0.0) (20,177.7) (0.0)
Liabilities from convertible bonds 43,727.9 0.0 43,727.9 0.0
(43,727.9) (0.0) (43,727.9) (0.0)
Liabilities from corporate bonds 118,397.2 0.0 118,397.2 0.0
(118,397.2) (0.0) (118,397.2) (0.0)
Liabilities from leasing 21,097.8 47.7 233.5 20,816.6
(1,519.4) (2.7) (12.8) (1,503.9)
Liabilities from trade payables 2,043.7 2,043.7 0.0 0.0
(2,692.0) (2,692.0) (0.0) (0.0)
Other non-current liabilities 52.4 0.0 52.4 0.0
(10.3) (0.0) (10.3) (0.0)
Other current liabilities 4,261.2 4,261.2 0.0 0.0
(1,558.0) (1,558.0) (0.0) (0.0)
1 Drawn credit line repayable at any time
The company can draw on credit lines. The total
amount not yet utilised as of the balance sheet date
is approximately TEUR 0.0 (previous year: TEUR 0.0).
The company expects to be able to meet its liabilities
at any time from operating cash flows, from the
inflow of maturing financial assets and capital
measures, and from the existing credit lines. In
addition, there are estimated future cash outflows
from interest on financial liabilities within one year
of TEUR 7,886.3 (previous year: TEUR 6,987.6), of
more than one but less than five years of TEUR
14,060.9 (previous year: TEUR 16,775.8) and after
more than five years of TEUR 4,685.7 (previous year:
TEUR 3,534.0). The future interest payments for
leases are shown in 6.2.
The majority of loan agreements include obligations
to comply with certain financial covenants. These
usually include standard ratios such as the debt
service coverage ratio (DSCR) or loan-to-value (LTV).
137Deutsche Industrie REIT-AG Notes
A breach of the agreed credit covenants could result
in an early repayment obligation, which could affect
liquidity in individual cases. As at the reporting date
30 September 2020, all covenants from loan and
bond agreements were complied with.
The recognised financial assets are classified as either
current or non-current according to their maturity.
Furthermore, DIR is fundamentally dependent on
being able to obtain debt capital at appropriate
conditions to refinance its current business activities
or for acquisitions. For example, crises on the inter-
national financial markets can make debt financing
more difficult and then lead to liquidity problems.
If, as a result, the debt service should no longer be
covered, lenders could initiate forced realisations of
real estate collateral, whereby distress sales could lead
to significant financial disadvantages. In this respect,
DIR continuously takes advantage of favourable
market conditions to align its financing in a favou-
rable and sustainable manner. This also applies to
the (convertible) bonds issued.
5.1.3. Interest rate risk
Due to its business activities, DIR is exposed to
interest rate risk. This exists for variable-rate loans
and for the redefinition of conditions of fixed-rate
loans after expiry of the fixed-rate period if higher
interest payments result from interest rate increases
by the ECB.
As of 30 September 2020, there are both fixed rate
loans and floating rate loans.
For hedging purposes, DIR uses derivative financial
instruments such as interest rate swaps or caps where
necessary, which minimise the interest rate risk or
interest rate sensitivity in the event of rising interest
rates. The Company used interest rate swaps for the
first time in the reporting year to hedge risks from
variable interest rates. For this purpose, DIR enters
into long-term loans at floating interest rates and
swaps these into fixed interest rates via the interest
rate swaps entered in parallel as part of micro-hedge
accounting, which results in the recognition of
interest expense at a fixed rate for the hedged floating
rate loans. The interest payments to be made on the
loans during the hedging period represent the hedged
items and are recognised in profit or loss. Cash flow
changes in the hedged items due to changes in the
reference interest rate are offset by cash flow changes
in the hedging instruments (interest rate swaps). The
cash flows from the hedged items hedged in cash flow
hedge accounting will occur until 2025 or 2028. The
fixed interest rates of the swaps range from 0.05 % to
0.2 % p.a., while the floating interest rates of the
loans correspond to the 3-month EURIBOR. The
contractual premiums of the underlying transactions
are between 1.42 % and 1.55 %. Payments from the
interest rate swap transactions are made on the
quarterly reporting date, so that the settlement dates
coincide with the dates on which the interest on the
underlying transactions is due. No derivatives are
used for speculative purposes. The effectiveness of
these hedging relationships is ensured by means of
a critical term match.
• Derivative financial instruments are reported in the following balance sheet items as of 30 September 2020:
TEUR 30/09/2020 30/09/2019
Non-current derivative financial instruments
Book value of interest rate swaps – held to hedge changes in cash flows 491.4 0.0
Total derivative financial instruments – assets 491.4 0.0
138Deutsche Industrie REIT-AG Annual report 2019/2020
• The Company’s hedging reserves relate to the following hedging instruments:
TEUR Interest rate swaps Total hedging reserves
As of 01/10/2019 0.0 0.0
Change in fair value of hedging instruments recognised in other comprehensive income
491.4 491.4
Hedging costs deferred and recognised in other comprehensive income 0.0 0.0
Reclassified from other comprehensive income to profit and loss 0.0 0.0
Deferred taxes 0.0 0.0
Closing balance as at 30/09/2020 491.4 491.4
• The effects of interest rate swaps on the financial position, liquidity and financial performance of the company are as follows:
TEUR 2019/2020
Book value (current and non-current assets) 491.4
Nominal amount 16,625.0
Due date 2025 or 2028
Hedging rate 100 %
Change in fair value of outstanding hedging instruments in the reporting period 491.4
Change in value of the hedged item used to determine hedge effectiveness –491.4
Weighted average hedge rate in the financial year 0.12 %
• The fair and nominal values of the total interest rate hedging contracts are as follows by residual maturity:
TEUR < 1 year 1–5 years > 5 years Total
Fair values 0 191.7 299.7 491.4
Nominal values 875.0 9,800.0 5,950.0 16,625.0
In addition, the company is continuously in talks
with its banking partners to extend expiring fixed-in-
terest periods in good time or to redeem loans early
or, if necessary, to reschedule them. In principle,
forward loans can also be considered.
If interest rates had been 1 % higher (lower) in the
reporting period, the annual result would have been
TEUR 3,060.7 lower (previous year: TEUR 1,728.9) or
TEUR 3,026.5 higher (previous year: TEUR 1,710.0).
The other result would have been TEUR 866.8 lower
or TEUR 814.8 higher with a 1 % higher (lower)
interest rate.
139Deutsche Industrie REIT-AG Notes
5.2. Net results from financial instruments
• The net gains and losses from financial instruments are distributed among the respective IFRS 9 measurement categories as follows:
Information as at 30/09/2020 in TEURInterest income
Interest expenses
Impairment (in other expenses)
OtherValuation
result
Financial instruments valued at FVtOCI 2,453.3 0.0 1,733.8 –281.1 1,733.8
(0.0) (0.0) (0.0) (0.0) (0.0)
Financial instruments valued at FVtPL 0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
Financial assets valued at AC 3,020.0 0.0 830.3 0.0 0.0
(0.0) (0.0) (208.1) (0.0) (0.0)
Derivatives financial assets in hedging relationships (cash flow hedge)
0.0 79.9 0.0 0.0 491.4
(0.0) (0.0) (0.0) (0.0) (0.0)
Net result from financial assets 5,473.3 79.9 2,564.1 –281.1 –1,242.4
(0.0) (0.0) (208.1) (0.0) (0.0)
Financial liabilities valued at FVtOCI 0.0 0.0 0.0 0.0 0.0
(0.0) (0.0) (0.0) (0.0) (0.0)
Financial liabilities valued at FVtPL 0.0 832.0 0.0 0.0 –7,904.0
(0.0) (208.0) (0.0) (0.0) (–832.0)
Financial liabilities valued at AC 0.0 7,315.2 0.0 0.0 0.0
(98.6) (6,341.4) (0.0) (0.0) (0.0)
Net result from financial liabilities (0.0) 8,147.2 0.0 0.0 –7,904.0
(98.6) (6,549.4) (0.0) (0.0) (–832.0)
The other result from assets measured at fair value
through other comprehensive income includes fees
for ongoing loan processing and servicing by Credit-
shelf. The valuation result of the FVtOCI category
includes the amount reclassified to the income
statement.
5.3. Offsetting financial assets and liabilities
Financial assets and liabilities are offset based on
global netting agreements only if there is an enforcea-
ble legal right to offset on the balance sheet date and
the intention is to settle on a net basis. If a right to
offset is not enforceable in the ordinary course of
business, the global netting agreement creates only a
contingent right to offset. In this case, the financial
assets and liabilities are shown in the balance sheet at
their gross amounts on the balance sheet date.
In the balance sheet as of 30 September 2020,
receivables from unbilled operating costs of TEUR
5,973.4 (previous year: TEUR 7,396.2) were offset
against advance payments received from operating
cost prepayments of TEUR 5,903.0 (previous year:
TEUR 7,089.5), as is customary in the industry.
140Deutsche Industrie REIT-AG Annual report 2019/2020
5.4. Capital management
The objectives of capital management are to maintain
a high credit rating and maximise shareholder value
by aiming for an optimal ratio of equity to debt (equi-
ty ratio) and complying with the requirements of the
REIT Act, which stipulates a minimum equity ratio of
45 % on immovable assets.
• The equity ratio at the end of the financial year was as follows:
in TEUR 30/09/2020 30/09/2019
Equity 377,200.0 181,463.3
Total assets 715,848.7 438.989.1
Equity ratio in % 52.7 41.3
• The equity ratio according to the REIT Act is as follows:
in TEUR 30/09/2020 30/09/2019
Equity 377,200.0 181,463.3
Investment property/immovable property 585,819.7 392,849.0
Equity ratio in % 64.4 46.2
Another control parameter is the loan-to-value,
which represents the ratio of net financial liabilities
to the value of the recognised property assets. DIR
aims to achieve a maximum LTV of 50 % to 55 %
in the medium term. This is currently not being
achieved, which offers scope for further borrowing:
in TEUR 30/09/2020 30/09/2019
Financial liabilities 330,750.4 252,265.8
minus other non-current financial assets –22,949.2 0.0
minus cash and cash equivalents and current loans –35.1 –2,065.7
minus current callable financial assets –87,716.0 –459.0
Net financial liabilities 220,050.1 249,741.1
Investment properties 585,819.7 392,849.0
Prepayments on acquired investment properties 7,474.1 38,886.2
Non-current assets held for sale 0.0 435.0
Total property assets 593,293.8 432,170.2
Loan-to-Value (LTV) in % 37.1% 57.8%
142Deutsche Industrie REIT-AG Annual report 2019/2020
5.5. Valuation categories of financial instruments according to IFRS 9
• An overview of the measurement categories of financial assets and liabilities according to IFRS 9 can be found in the following table:
Figures in TEURCategory
according to IFRS 9
Book value as at
30/09/2020AC FVtPL FVtOCI IFRS 16
Fair value as at
30/09/2020
Valuation hierarchy
Financial assets
Other non-current financial assets
FVtOCI 14,595.2
(0.0)
– – 14,595.2
(0.0)
– 14,595.2
(0.0)
Level 3
Other non-current financial assets
AC 8,354.0
(0.0)
8,354.0
(0.0)
– – – 8,354.0
(0.0)
Level 2
Non-current derivative financial instruments
– 491.4
(0.0)
– – 491.4
(0.0)
– 491.4
(0.0)
Level 2
Receivables from deliveries and services
AC 3,420.1
(815.9)
3,420.1
(815.9)
– – – 3,420.1
(815.9)
Level 2
Cash and cash equivalents AC 35.1
(2,065.6)
35.1
(2,065.6)
– – – 35.1
(2,065.6)
Level 2
Other current assets AC 76,372.5
(1,139.0)
76,372.5
(1,139.0)
– – – 76,372.5
(1,139.0)
Level 2
Other current assets FVtOCI 15,934.4
(0.0)
– – 15,934.4
(0.0)
, 15,934.4
(0.0)
Level 3
Total financial assets 119,202.7
(4,024.1)
88,181.7
(4,024.1)
0.0
(0.0)
31,021.0
(0.0)
– 119,202.7
(4,024.1)
143Deutsche Industrie REIT-AG Notes
Financial liabilities
Liabilities to credit institutionsAC
142,484.9
(71,483.4)
142,484.9
(71,483.4)
– – – 143,600.
(71,442.5)Level 2
Liabilities to other lendersAC
0.0
(20,177.8)
0.0
(20,177.8)
– – – 0.0
(20,177.8)Level 2
Liabilities from convertible bondsFVtPL
49,088.0
(41,184.0)
49,088.0
(41,184.0)
– – – 49,088.0
(41,184.0)Level 1
Liabilities from corporate bondsAC
118,065.2
(117,904.0)
118,065.2
(117,904.0)
– – – 122,720.0
(123,900.0)Level 1
Liabilities from leases–
21,107.6
(1,485.8)
– – – 21,107.6
(1,485.8)
21,107.6
(1,485.8)Level 2
Liabilities from deliveries and services AC
2,043.7
(2,692.0)
2,043.7
(2,692.0)
– – – 2,043.7
(2,692.0)Level 2
Other non-current liabilitiesAC
52.4
(10.3)
52.4
(10.3)
– – – 52.4
(10.3)Level 2
Other current liabilitiesAC
1,667.2
(729.2)
1,667.2
(729.2)
– – – 1,667.2
(729.2)Level 2
Total financial liabilities 334,509.0
(255,666.5)
313,401.4
(254,180.7)
0.0
(0.0)
0.0
(0.0)
21,107.6
(1,485.8)
340,279.6
(255,666.5)
144Deutsche Industrie REIT-AG Annual report 2019/2020
5.6. Fair value of assets and liabilities
The IFRS determine the recognition of a fair value
for various assets and liabilities.
The fair value is defined in IFRS 13 and is to be
determined using valuation methods and input
parameters that are as close to the market as possible.
A valuation hierarchy divides the input data into
three levels according to their quality:
Level 1 Quoted (unadjusted) prices in active markets
for identical assets or liabilities, such as stock prices
Level 2 Input factors other than quoted prices
included in Level 1 but which are observable for the
asset or liability either directly or indirectly
(i. e. derived from prices)
Level 3 Factors not based on observable market
data for the valuation of the asset or liability
If input factors of different levels are applied, the
fair value is allocated to the lower hierarchy level.
The company generally recognises reclassifications
between different levels at the end of the reporting
period in which the change occurred. In the 2019/
2020 financial year and in the previous period, there
were no reclassifications between the respective
hierarchy levels.
• The assets and liabilities recognised at fair value in the balance sheet are as follows:
in TEUR Valuation hierarchy 30/09/2020 30/09/2019
Investment properties Level 3 585,819.7 392,849.0
Acquired loans Level 3 30,529.7 0.0
Derivative financial instruments Level 2 491.4 0.0
Properties for sale Level 1 0.0 435.0
Total assets 616,840.7 393,284.0
Convertible bond Level 1 49,088.0 41,184.0
Total liabilities 49,088.0 41,184.0
The fair value of non-current assets or liabilities
corresponds to the present value of the expected
payments, considering market interest rates for
matching maturities and risks, if no stock market
price is available. Current trade receivables as well as
other assets and cash and cash equivalents therefore
approximate their fair values.
The fair value of the acquired loans corresponds to
the acquisition costs adjusted for repayments made,
considering valuation adjustments based on cred-
it-specific default probabilities, which are updated
regularly.
145Deutsche Industrie REIT-AG Notes
6.1. Contingent liabilities and other financial obligations
• As of the reporting date. the following significant financial obligations exist:
TEUR 30/09/2020 30/09/2019
Asset and property management contracts 8,483.0 7,834.7
Administrative levies contracts 507.3 471.9
Car leasing 10.4 13.6
Total 9,000.7 8,320.2
of which up to 1 year 3,055.9 2,876.8
of which between one and five years (undiscounted) 5,944.8 5,443.4
of which over five years (undiscounted) 0.0 0.0
As of the balance sheet date 30 September 2020,
the company has purchase price obligations from
notarised purchase agreements for four properties
in the amount of TEUR 18,200.
There are no other contingent liabilities.
6.2. Obligations under leases
As the lessee of leasehold contracts, there are long-term leasing liabilities that lead to payments in subsequent
years. These are distributed as follows:
in TEUR Total up to 1 year 1 to 5 years over 5 years
Minimum lease payments 30/09/2020 78,360.7 1,710.3 6.841.1 69,809.3
thereof interest payments 57,262.9 1,662.6 6.607.6 48,992.7
thereof repayments 21,097.8 47.7 233.5 20,816.6
Minimum lease payments 30/09/2019 6,315.2 115.7 462.7 5,736.9
thereof interest payments 4,795.8 113.0 449.9 4,232.9
thereof repayments 1,519.4 2.7 12.8 1,503.9
The leasehold contracts have a remaining useful life
of 49.4 years on average and are adjusted to agreed
indices through value protection clauses. In the
reporting year, an index adjustment took place, as a
result of which the book value of the leaseholds was
increased by TEUR 12.2. This effect on the leasing
6. Other information
146Deutsche Industrie REIT-AG Annual report 2019/2020
liabilities and rights of use was recognised in the
reporting period without affecting profit or loss.
Furthermore, extension options exist in some cases.
There were no contingent lease payments.
6.3. Transactions with related companies and persons
The companies and persons related to the company
in accordance with IAS 24 comprise the following
groups:
• Parent company.
• Other shareholders.
• Other related entities - including subsidiaries.
joint ventures and associates of the shareholders
with at least significant influence and companies
controlled by the management.
• Members of the Management and Supervisory
Boards of the Company and the Management and
Supervisory Boards of the parent company and
their close family members.
The company maintains business relationships with
related companies and persons. Essentially, these
relationships comprise financial services through
short-term liquidity provision based on concluded
framework agreements as well as services.
The scope of transactions with related parties is
shown below:
Deutsche Industrie is an affiliated company of
Obotritia Capital KGaA, Potsdam. For the use of
business premises, the provision of office equipment
and administrative staff, including the activities of
the Executive Board, Obotritia Capital KGaA charged
a fee of TEUR 507.4 (previous year: TEUR 471.9) in
the reporting period as part of the agency agreement
concluded, including its first amendment dated
1 July 2020.
The Company has concluded reciprocal loan frame-
work agreements with Obotritia Capital KGaA
(“Obotritia Capital”). These reciprocal master loan
agreements enable the Company and Obotritia
Capital to provide loans to each other on an as-need-
ed basis and have a maturity date of 31 December
2024 (for the master loan agreement under which
Obotritia Capital may lend to the Company) and
31 December 2027 (for the master loan agreement
under which the Company may lend to Obotritia
Capital). However, both agreements can be terminat-
ed - notwithstanding the possibility of extraordinary
termination - with a notice period of three months.
Currently, the agreed maximum amount for loans
granted by the Company to Obotritia Capital is EUR
80.0 million and for loans granted by Obotritia
Capital to the Company is EUR 31.0 million. Interest
of 8 % p. a. is payable on the amount of the loan
drawn down. Interest payments are deferred and are
due at the latest upon termination of the loan. No
collateral was agreed.
As of 30 September 2020, there was a receivable
including interest of TEUR 75,014.1 (previous year:
liability of TEUR 20,177.8). Interest income of TEUR
3,020.0 (previous year: TEUR 98.6) and interest
expenses of TEUR 198.3 (previous year: TEUR 1,064.2)
were generated for the financial year.
There is a management contract with GV Nordost
Verwaltungsgesellschaft mbH, Rostock, for the
property management of the real estate portfolio.
The agreed remuneration amounts to 2 % or 3 % of
the net rental income received (plus VAT) per month,
depending on the property. Expenses of TEUR 1,062.5
(previous year: TEUR 705.7) were incurred in the
reporting year.
Furthermore, there is a management and consulting
contract with Elgeti Brothers GmbH, Berlin. The
agreed remuneration amounts to 0.5 % per annum of
the gross asset value of the company’s properties,
calculated based on the acquisition prices and
transaction costs, and is paid in quarterly instal-
ments. In the reporting year, expenses amounted to
TEUR 2,103.4 (previous year: TEUR 1,310.5).
147Deutsche Industrie REIT-AG Notes
A usage transfer agreement exists with Solitaire
Verwaltungsgesellschaft mbH & Co. KG for the use of
a motor vehicle with a term until 31 December 2023,
resulting in annual lease payments of TEUR 3.1 net
plus VAT. In addition, Solitaire undertakes to fully
assume all costs associated with the vehicle (insur-
ance, repairs, etc.).
Furthermore, DIR leases commercial space to Solitaire
Verwaltungsgesellschaft mbH & Co. KG commercial
space with an annual net rent of TEUR 31.0 and
additionally three parking spaces free of charge. The
lease is for an indefinite period and can be terminated
at any time with a notice period of three months.
Furthermore, the Company invested short-term
surplus liquidity in the amount of TEUR 48,955.5
in the acquisition of loans from Creditshelf Service
GmbH, Frankfurt. Obotritia Capital KGaA holds
shares in Creditshelf AG, so that this company and
its subsidiary, Creditshelf Service GmbH, are to be
classified as related parties. No loans defaulted during
the reporting period. However, in view of the Corona
pandemic, some borrowers have taken a bridging
loan of TEUR 1,352.4, which was transferred directly
to the Company for the repayments of the existing
loans in the following months. The future instal-
ments paid in advance to the company were consid-
ered as advance payments received. The impairment
on the acquired loans in the amount of TEUR 1,733.8
is recognised in other comprehensive income, where-
as the change in fair value in the amount of TEUR
1,733.8 is recognised in other comprehensive income.
Creditshelf received TEUR 281.1 from Deutsche
Industrie for ongoing loan processing and servicing.
In addition, Deutsche Industrie acquired loans from
an affiliated company via the Creditshelf Service
GmbH platform. In the reporting period, DIR ac-
quired two loans with a total investment volume
of TEUR 4,900.0. The interest rates are 10.00 % and
11.00 %. As at the balance sheet date, Deutsche
In dustrie has a receivable of TEUR 2,531.9 including
interest. In the 2019/2020 business year, interest
income from the loans in the amount of TEUR 307.8
and value adjustments in the amount of TEUR 90.0
were recognised.
• The following receivables from and payables to related parties exist in the balance sheet:
TEUR 30/09/2020 30/09/2019
Other current assets
against shareholders (Obotritia Capital KGaA) 75,014.1 0.0
Other related parties 2,535.4 17.0
Liabilities to other lenders
against Obotritia Capital KGaA 0.0 20,177.8
No loans or advances were granted to related parties.
Close family members of the Management Board and
the Supervisory Board have no influence on the
company’s business decisions.
148Deutsche Industrie REIT-AG Annual report 2019/2020
6.4. Supervisory Board and Management
• In the reporting period, the Supervisory Board was composed as follows:
Name OccupationMemberships in other supervisory bodies within the meaning of Section 125 (1) sentence 5 of the German Stock Corporation Act (AktG)
Hans-Ulrich Sutter
Chairman of the Supervisory Board
Member and Chairman since March 2019
Business graduate, Supervisory Board
• Deutsche Konsum REIT-AG, Broderstorf (Chairman of the Supervisory Board), listed on the stock exchange
• TAG Colonia-Immobilien AG, Hamburg (Deputy Chairman of the Supervisory Board)
Dr. Dirk Markus
First Deputy Chairman of the Supervisory Board
Member and Deputy Chairman since October 2017, First Depu-ty Chairman of the Supervisory Board since 6 March 2020
Economist, CEO of Aurelius Group, London, United Kingdom
• Obotritia Capital KGaA, Potsdam (Member of the Supervisory Board)
Achim Betz
Second Deputy Chairman of the Supervisory Board
Member since October 2017, second Deputy Chairman of the Supervisory Board since 6 March 2020
Chartered accountant, tax consultant, business graduate
ba audit GmbH Wirtschafts-prüfungsgesellschaft, Berlin (Managing Partner),
BSF Treuhand GmbH Wirtschaftsprüfungs-gesellschaft, Stuttgart (Managing Partner)
• Hevella Capital GmbH & Co. KGaA, Potsdam (Chairman of the Supervisory Board)
• Deutsche Leibrenten Grundbesitz AG, Frankfurt am Main (Deputy Chairman of the Supervisory Board)
• Deutsche Konsum REIT-AG, Rostock (First Deputy Chairman of the Supervisory Board), listed on the stock exchange
• NEXR Technologies SE (formerly Staramba SE), Berlin (Vice-Chairman of the Board of Directors)
• Bankhaus Obotritia GmbH, München (Member of the Audit Committee)
Cathy Bell-Walker
Member of the Supervisory Board (since 06 March 2020)
Lawyer (Solicitor, England & Wales)
• Deutsche Konsum REIT-AG, Broderstorf (Member of the Supervisory Board since 5 March 2020), listed on the stock exchange
Antje Lubitz
Member of the Supervisory Board (since 06 March 2020)
Real estate economist, 3PM Services GmbH, Berlin (Managing Director)
• None
The remuneration of the Supervisory Board for the
financial year amounted to TEUR 28.8 (previous year:
TEUR 22.5) excluding VAT. No loans or advances were
granted to members of the Supervisory Board;
likewise, no contingent liabilities were entered into in
favour of Supervisory Board members.
149Deutsche Industrie REIT-AG Notes
• In the reporting period, the Executive Board was composed as follows:
Name OccupationMemberships in other supervisory bodies within the meaning of Section 125 (1) sentence 5 of the German Stock Corporation Act (AktG)
Rolf Elgeti
Chief executive officer
Chief Executive Officer (CEO) • TAG Immobilien AG, Hamburg, Germany (Chairman of the Supervisory Board)
• Deutsche Leibrenten Grundbesitz AG, Frankfurt am Main, Germany (Chairman of the Supervisory Board)
• creditshelf Aktiengesellschaft, Frankfurt am Main, Germany (Chairman of the Supervisory Board)
• NEXR Technologies SE (formerly Staramba SE), Berlin, Germany (Chairman of the Board of Directors)
• HLEE (Highlight Event and Entertainment AG, Pratteln, Switzerland) (Member of the Board of Directors)
• Laurus Property Partner, Munich, Germany (Member of the Advisory Board)
• Bankhaus Obotritia GmbH, Munich (Member of the Audit Committee)
Sonja Petersen (nee Paffendorf)
Chief Investment Officer (CIO)
• None
René Bergmann Chief Financial Officer (CFO) • None
The remuneration of the Chairman of the Executive
Board for the 2019/2020 financial year amounts to
TEUR 71.3 (previous year: TEUR 71.3). The remunera-
tion is paid by Obotritia Capital KGaA as there is no
employment contract between the company and the
Chairman of the Executive Board. There are no other
benefits or variable remuneration.
For details on the remuneration of the Supervisory
Board and the Management Board, please refer to the
remuneration report in the DIR management report.
6.5. Consolidated Financial Statements
DIR is included as a subsidiary in the consolidated
financial statements of Obotritia Capital KGaA,
Potsdam. The 2019/2020 annual financial statements
are included in the consolidated financial statements
of Obotritia Capital KGaA, Potsdam, for the largest
and smallest group of companies, which are disclosed
in the Federal Gazette.
150Deutsche Industrie REIT-AG Annual report 2019/2020
6.6. Fee of the auditor
• The auditor’s fees in the past financial year were as follows:
TEUR 30/09/2020 30/09/2019
Audit services for financial statements 94.3 93.1
Other certification services 77.6 63.2
Other services 5.6 5.4
Total 177.5 161.7
of which relating to other periods 29.1 18.1
The other certification services in 2019/2020 relate
to the issuance of a comfort letter in accordance with
IDW PS 910 (TEUR 73.4) and the audit in accordance
with Section 1 (4) of the REIT Act as of 30 September
2018 and 30 September 2019 (TEUR 4.2). Fees unre-
lated to the accounting period are included from
recalculations in the amount of TEUR 29.1 (previous
year: TEUR 18.1).
6.7. Significant events after the balance sheet date
Between the balance sheet date and the time, the
financial statements were prepared, four properties
were transferred to the economic ownership of
Deutsche Industrie. The investment volume was
around EUR 18.2 million. The locations are Euskirch-
en, Oschersleben, Grünsfeld and Bielefeld.
In addition, purchase agreements were concluded
for four properties totalling EUR 33.8 million. The
properties are located in Metzingen, Sembach, Gevels-
berg (Mühlenstr.) and Gevelsberg (Kölner Straße).
The company sold several undeveloped plots of land
at the property in Mönchweiler, which had not yet
been divided and were not necessary for manage-
ment, to the municipality of Mönchweiler and to
a private party in two notarised contracts dated
24 November 2020. The notarisation was also carried
out without power of attorney for the buyers. The
approval of the purchase agreements by the buyers
is scheduled for 16.12.2020.
Two loan agreements totalling EUR 3.6 million were
concluded with Berliner Volksbank to refinance the
properties in Löbichau and Kloster Lehnin.
A loan agreement for EUR 2.5 million was concluded
with VerbundVolksbank OWL eG to refinance the
Bielefeld property.
151Deutsche Industrie REIT-AG Notes
6.8. Corporate Government Codex (Declaration on the German Corporate Governance Code pursuant to Art. 161 AktG)
On 23 October 2020, the Executive Board and
Supervisory Board of Deutsche Industrie REIT-AG
issued the current declaration of compliance with the
German Corporate Governance Code in accordance
with Section 161 of the German Stock Corporation
Act (AktG) and on 4 December 2020 the current
corporate governance declaration. The declaration
was made permanently available to shareholders at
https://deutsche-industrie-reit.de.
Rostock, 7 December 2020
Rolf Elgeti
Chief Executive Officer
Rolf Elgeti
Chief Executive Officer
Sonja Petersen
Chief Investment Officer
Sonja Petersen
Chief Investment Officer
René Bergmann
Chief Financial Officer
René Bergmann
Chief Financial Officer
Assurance of legal representatives
“We assure to the best of our knowledge that, in
accordance with the applicable accounting principles,
the annual financial statements as at 30 September
2020 give a true and fair view of the net assets,
financial position and results of operations of the
Company and that the management report gives a
true and fair view of the development and perfor-
mance of the business and the position of the
Company, together with a description of the princi-
pal opportunities and risks associated with the
expected development of the Company.”
Rostock, 7 December 2020
152Deutsche Industrie REIT-AG Annual report 2019/2020
Audit Opinion of the independent individual financial statementsTo Deutsche Industrie REIT-AG, Rostock
Note on the audit of the consolidated financial statements and the management report
Audit opinionsWe have audited the individual financial statements
of Deutsche Industrie REIT-AG, comprising the bal-
ance sheet as of 30 September 2020, the statement of
comprehensive income, the cash flow statement and
the statement of changes in equity for the financial
year from 1 October 2019 to 30 September 2020 and
the notes, including a summary of significant ac-
counting policies. In addition, we have audited the
management report of Deutsche Industrie REIT-AG
for the financial year from 1 October 2019 to 30 Sep-
tember 2020. In accordance with German legal
requirements, we have not audited the contents
of the management report in the section “Other
information” of our audit opinion.
In our opinion, based on the findings of the audit,
• the accompanying financial statements comply in
all material respects with IFRSs as adopted by the
EU, the additional requirements of German law
pursuant to § 315e Abs. 1 HGB and give a true and
fair view of the net assets and financial position of
the Company as of September 30, 2020 and of its
results of operations for the financial year from
October 1, 2019 to September 30, 2020 in accord-
ance with these requirements, and
• The accompanying management report provides a
suitable view of the Company‘s situation. In all
material respects, this management report is
consistent with the single-entity financial state-
ments, complies with German legal requirements
and suitably presents the opportunities and risks
of future development.
Pursuant to Section 322 (3) Sentence 1 HGB, we
declare that our audit has not led to any objections to
the regularity of the individual financial statements
and the management report.
Basis for the judgmentsWe examined the individual financial statements
and the management report in accordance with
section 317 HGB and the EU Auditors Ordinance (No.
537/2014, in the following, „EU-APrVO“) in accord-
ance with the German principles of proper statutory
audit as stated by the Institut der Wirtschaftsprüfer
(IDW). Our responsibilities under these rules and
policies are further described in the section entitled
„Auditor‘s Responsibility for the Audit of the Individ-
ual Financial Statements and the Management
Report“. We are independent of the Company in
accordance with the European and German commer-
cial and professional regulations and fulfilled our
other German professional obligations in accordance
with these requirements. In addition, in accordance
with Article 10 (2) (f) EU-APrVO, we declare that we
did not perform any prohibited non-audit ser-vices
under Article 5 (1) EU APrVO. We believe that the
audit evidence we obtained is sufficient and appropri-
ate to serve as a basis for our opinion on the individ-
ual financial statements and management report.
153Deutsche Industrie REIT-AG Notes
Other Information The legal representatives are responsible for the other
information. Other information includes: the
following components of the management report
which have not been audited in terms of content:
• the corporate governance statement referred to
in the management report.
Our audit opinions on the individual financial
statements and the management report do not
extend to the other information and accordingly we
do not give any opinion or any other form of audit
conclusion.
In connection with our audit, we have a responsibili-
ty to read the other information and to evaluate
whether the other information
• have material inconsistencies with the individual
financial statements, the management report or
our knowledge acquired during the audit, or
• otherwise appear to be significantly misrepre-
sented.
Responsibility of the legal representatives and the Supervisory Board for the individual financial statements and the management reportThe legal representatives are responsible for the
preparation of the individual financial statements,
which comply with the IFRS, as applicable in the EU,
and the German statutory provisions to be applied in
addition to § 315e paragraph 1 HGB in all material
respects, and that, in accordance with these regula-
tions, the individual financial statements give a true
and fair view of the net assets, financial position and
results of operations of the Company. In addition, the
legal representatives are responsible for the internal
controls that they have determined to be necessary to
enable the preparation of financial statements that
are free from material misstatement, whether inten-
tional or unintentional.
In preparing the individual financial statements,
the legal representatives are responsible for assessing
the ability of the business to continue to operate.
They also have responsibility for dis-closing matters
relating to the continuation of business, if relevant.
In addition, they are responsible for accounting for
continuing operations based on the accounting
policy, unless there is an intention to liquidate the
Company or cease operations or there is no realistic
alternative.
In addition, the legal representatives are responsible
for the preparation of the management report, which
as a whole conveys a true picture of the Company‘s
situation, is in all material respects consistent with
the individual financial statements, complies with
German legal requirements and truly represents the
opportunities and risks of future development. Fur-
thermore, the legal representatives are responsible for
the precautions and measures (systems) that they
deemed necessary to enable the preparation of a man-
agement report in accordance with the applicable
German statutory provisions, and sufficient appropri-
ate evidence for the statements in the management
report.
The Supervisory Board is responsible for overseeing
the Company‘s accounting process for the prepara-
tion of the individual financial statements and the
management report.
Responsibility of the auditor for the audit of the individ-ual financial statements and the management reportOur objective is to obtain reasonable assurance as
to whether the individual financial statements as a
whole are free from material misstatement, whether
intentional or unintentional, and whether the man-
agement report gives a true picture of the condition
of the Company and complies with, in all material
respects, the individual financial statements and is
consistent with the findings of the audit, complies
with German statutory requirements and accurately
reflects the opportunities and risks of future develop-
154Deutsche Industrie REIT-AG Annual report 2019/2020
ment, and provides an audit opinion that includes
our audit opinions on the individual financial
statements and management report.
Sufficient security is a high degree of certainty, but no
guarantee that an examination conducted in accord-
ance with § 317 HGB and the EU-APrVO in compli-
ance with the German generally accepted standards
for the audit of financial statements promulgated by
the Institut der Wirtschaftsprüfer (IDW) always re-
veals a material misrepresentation. Misrepresenta-
tions may result from breaches or inaccuracies and
are considered material if they could reasonably be
expected to influence, individually or collectively,
the economic decisions of addressees made based on
these financial statements and management report.
During the audit, we exercise due discretion and
maintain a critical attitude. Furthermore,
• we identify and assess the risks of material
misrepresentations, whether intentional or
unintentional, in the individual financial state-
ments and the management report, plan and
perform audit work in response to such risks and
obtain audit evidence that is adequate and appro-
priate to form the basis for our examination
judgments. The risk that material misrepresenta-
tion will not be detected will be greater in the
event of a breach than in the case of inaccuracies,
as breaches may include fraudulent interactions,
counterfeiting, intentional incompleteness,
misrepresentations or overriding of internal
controls.
• we gain an understanding of the internal control
system relevant to the audit of the individual
financial statements and the arrangements and
measures relevant to the audit of the management
report in order to design audit procedures that are
appropriate in the circumstances, but not with the
aim of providing an opinion on the effectiveness
of these systems.
• we assess the appropriateness of the accounting
policies used by the legal representatives and the
reasonableness of the estimates and related
disclosures made by the legal representatives.
• we draw conclusions about the appropriateness of
the accounting policy used by the legal represent-
atives in continuing operations and, on the basis
of the audit evidence obtained, whether there is
material uncertainty in relation to events or
circumstances that have significant doubts about
the Company‘s performance ability to continue
to operate. If we conclude that there is material
uncertainty, we are required to draw attention to
the related disclosures in the individual financial
statements and management report or, if unrated,
to modify our respective opinion in the audit
report. We draw our conclusions based on the
audit evidence obtained up to the date of our
audit opinion. However, future events or circum-
stances may mean that the Company can no
longer continue its business activities.
• we assess the overall presentation, structure and
content of the individual financial statements,
including disclosures and whether the financial
statements present the underlying transactions
and events such that the individual financial
statements are prepared in compliance with IFRSs
as adopted by the EU and which, in accordance
with § 315e (1) HGB (German Commercial Code),
provides the German legal provisions in a manner
that reflects the actual circumstances and conveys
a picture of the net assets, financial position and
results of operations of the Company.
• we assess the consistency of the management
report with the individual financial statements,
its legislation and the picture it conveys of the
Company‘s situation.
155Deutsche Industrie REIT-AG Notes
• we conduct audits of the forward-looking state-
ments presented by the legal representatives in
the management report. Based on adequate and
appropriate proof of audit, we particularly carry
out the significant assumptions underlying the
forward-looking statements of the legal represent-
atives and assess the proper derivation of the
forward-looking statements from these assump-
tions. We do not issue an independent opinion
on the forward-looking statements and on the
underlying assumptions. There is a significant
unavoidable risk that future events will differ
materially from the forward-looking statement.
Among other things, we discuss with the persons
responsible for the supervision the planned scope
and timing of the audit and significant audit findings,
including any deficiencies in the internal control
system that we identify during our audit.
We make a statement to the persons responsible for
the supervision that we complied with the relevant
independence requirements and discuss with them all
relationships and other matters that can reasonably
be expected to affect our independence and the
protective measures taken.
From the issues we discussed with the persons respon-
sible for the supervision, we determine those matters
that were most significant in the audit of the finan-
cial statements for the current period and are there-
fore the key audit matters. We describe these matters
in the audit report, unless laws or other legal provi-
sions exclude public disclosure of the facts.
Other legal and other legal requirements Other information according to
Article 10 EU-APrVO
We were elected as auditors by the Annual General
Meeting on 6 March 2020. We were appointed by the
Supervisory Board on 28 August 2020. We have been
the uninterrupted auditors of the annual financial
statements of Deutsche Industrie REIT-AG since fiscal
year 2016.We declare that the audit opinions con-
tained in this audit opinion are in accordance with
the additional report to the Audit Committee pursu-
ant to Article 11 EU-APrVO (audit report).
Responsible auditorThe auditor responsible for the audit is Mr. Torsten
Fechner.
Berlin, 7 December 2020
DOMUS AG
Audit firm
Tax consultancy firm
sgd. Prof. Dr. Hillebrand
Auditor
sgd. Fechner
Auditor
156Deutsche Industrie REIT-AG Annual report 2019/2020
Statement by the Executive Board regarding compliance with the requirements of the REITG
REITG Regulation Date DIR REIT criteria fulfilled
§ 11 (1) Freefloat of shares > 15 % 31/12/2019 32.2 % Yes
§ 11 (2) No investor holds > 10 % of the shares 30/09/2020 – Yes
§ 12 (2a) Immovable assets of at least 75 % of all assets 30/09/2020 82.6 % Yes
§ 12 (3a) At least 75 % of the income is generated by immovable assets
30/09/2020 85.2 % Yes
§ 13 Dividend distribution of > 90 % of year end result according to German GAAP 30/09/2020 125.5 % Yes
§ 14 Exclusion of real estate trading 30/09/2020 0.2 % Yes
§ 15 Equity of at least 45 % 30/09/2020 64.4 % Yes
§ 19 (3) in conjunction with. § 19 a pre-encumbered entries 30/09/2020 None
In connection with the publication of the annual
financial statements as of September 30, 2020, the
Executive Board declares compliance with the REIT
criteria in accordance with the REIT Act (REITG)
as follows:
The free float rate on 31 December 2019 was commu-
nicated to the German Federal Financial Supervisory
Authority (BaFin) on 15 January 2020. The statement
by the Executive Board regarding compliance with
the REIT criteria is subject to the auditor’s approval,
which is expected in January 2021.
Rolf Elgeti Sonja Petersen René Bergmann
Chief Executive Officer Chief Investment Officer Chief Financial Officer
Deutsche Industrie REIT-AG
Potsdam, 7 December 2020
Deutsche Industrie REIT-AG Annual report 2019/2020
158
Financial Calendar
The financial calendar is constantly updated and can be found on our website at:
https://www.deutsche-industrie-reit.de/en/investor-relations/financial-calender/
18/12/2020Publication of the annual report for the financial year 2019/2020
11/02/2021Q1 2020/2021 Interim statement
12/03/2021Annual general meeting
12/05/2021H1 2020/2021 Financial report
12/08/2021Q3 2020/2021 Interim statement
16/12/2021Publication of the annual report for the financial year 2020/2021
Deutsche Industrie REIT-AG Glossary
159
GlossaryAFFO FFO - Value-enhancing investments (Capex)
Annualised in-place rent Contractual net cold rent p.a. for all units (includes also antennas, parking lots, open spaces, apartments etc.)
Commercial rental space e.g. logistics, production, warehouse, office or similar without parking and other units (for example anten-nas, open spaces, apartments)
Commercial units e.g. logistics, production, warehouse, office or similar without parking and other units (for example anten-nas, open spaces, apartments)
Cost Ratio ratio between administrative expenses (after adjustment for one-off effects) and gross rental income
Coverage Valuation of the company's share by external financial analysts and publication of investment recom-mendations
Current market value (Fair Value) Value determined by means of market value appraisal or, where this is not yet available, the purchase price
Date of transfer Transfer of ownership (benefits and encumbrances)
EBIT operating income (sale& lease) excluding administration costs & depreciation before interest and income taxes
EBT operating result (EBIT) + financial income excluding financial expenses (interest) before income tax
EPRA The European Public Real Estate Association is a non-profit organization that represents the interests of European public real estate companies
EPRA NAV per share Total equity modified according to EPRA guidelines divided by number of shares
FFO Funds From Operation - Recurring and one-off adjusted result from the operation of the property portfolio
GAV Gross Asset Value – Value of investment properties on the balance sheet
ICR Interest coverage ratio, EBITDA divided by interest expenses, the ability of the company to pay the interest back based on the results of their operations
IPR commercial per m² Rent of leased commercial units divided by space of leased commercial units
Light Industrial Generic term for various types of companies in the industrial sector and includes activities of storage, distribution of commercial goods as well as their administration and production, commercial yards, logi-stics real estate (warehouses, transfer station, distribution halls and special warehouses) and industrial real estate (commercial storage, packaging and smaller production facilities)
Like-for-like Periodic review of the economic development of the previous year's portfolio (adjusted for purchases and sales in the current year)
Net-LTV Net loan-to-value – debt (financial liabilities minus cash) divided by GAV
Occupancy commercial Rented commercial space divided by rentable (total) commercial space
Proforma-Portfolio Portfolio including notarised properties with transfer of ownership after balance sheet date
Deutsche Industrie REIT-AG Annual report 2019/2020
160
Total rental space Also contains ancillary areas such as open spaces, ancillary rooms (corridors, sanitary facilities, com-mon areas), apartments, owner-occupied space (concierge or similar)
Valuation multiple Information about the profitability of an investment - purchase price divided by annual market rent, inverse of initial return
WALT Weighed average lease terms - only contracts with an agreed fixed term have been considered
Yield (Gross Initial) net rent income divided by purchase price (excluding transfer costs)
PublisherDeutsche Industrie REIT-AG
Registered OfficeAugust-Bebel-Str. 68
14482 Potsdam
Management Board:Rolf Elgeti, Sonja Petersen, René Bergmann
Contact:Phone: +49 (0) 331 74 00 76 -50
Fax: +49 (0) 331 74 00 76 -520
E-Mail: [email protected]
Registry:Registered Office: Rostock
Commercial register: HRB 13964
District court Rostock
Tax-No.: 046/111/05458
FA Potsdam
VAT-ID:Umsatzsteuer-Identifikationsnummer according § 27a
Umsatzsteuergesetz: DE 303462302
DisclaimerThis financial report contains forward-looking state-
ments. These are based on current estimates and are,
therefore, subject to risks and uncertainties.
In this respect, the actual events may differ from the
statements formulated here.
The report is also available in German. In doubtful
questions, the German version is always authoritative.
Deutsche Industrie REIT-AG Imprint
161
Deutsche Industrie REIT-AGAugust-Bebel-Str. 68
14482 Potsdam
Phone: +49 (0) 331 74 00 76 - 50
Fax: +49 (0) 331 74 00 76 - 520
E-Mail: [email protected]